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Avis Rent A Car

Avis Rent A Car

The total investment to open a Avis Rent A Car franchise ranges from $625,500 to $1.6M. The initial franchise fee is $50,000. Ongoing royalties are 7.5%.

What is the Avis Rent A Car franchise?

Avis Rent A Car System, LLC began in 1946, when Warren Avis introduced airport based car rentals at Willow Run Airport in Detroit, Michigan, with three vehicles. By 1953, Avis had become the second largest car rental company in the United States. In 1956, its tenth anniversary year, the company opened its first international offices in Europe, Canada, and Mexico. CEO Robert Townsend adopted the corporate motto "We Try Harder" in 1962, and the phrase remains a central service principle. After operating under several ownership structures, Avis became part of Avis Budget Group in 2006. Avis had approximately 5,500 rental locations in 165 countries as of 2019. Avis Budget Group managed around 10,250 locations worldwide as of September 2025, including its brand portfolio and car sharing network. Avis Car Rental, LLC is headquartered in Parsippany, New Jersey, U.S., and operates as a subsidiary of Avis Budget Group, which also manages Budget Rent a Car, Budget Truck Rental, and Zipcar. Avis Budget Group held an estimated 21.76% market share by revenue in Q1 2025. Brian Choi was Chief Executive Officer of Avis Budget Group as of July 2025. Its history since 1946, international network, and operating scale make the Avis Rent A Car franchise a significant investment in the global car rental sector.

The global car rental market was valued at $129.66 billion in 2024 and is projected to reach $300.03 billion by 2033. Growth is tied to the recovery of business and leisure travel toward pre pandemic levels, along with urbanization and changing transportation preferences. Younger consumers are increasingly choosing flexible transportation instead of vehicle ownership. Europe and the Asia Pacific region are expanding as middle class populations and tourism grow. Customers are placing greater value on flexibility, sustainability, and digital experiences. Technology, changing customer preferences, and sustainability initiatives continue to shape the sector, while established operators with broad networks hold a meaningful competitive advantage. Avis Budget Group's estimated 21.76% market share by revenue in Q1 2025 reflects that concentration. Demand for luxury rentals increased by 81% between March 2024 and March 2025, while demand for SUVs increased by 51% during the same period. Airport locations accounted for approximately 60% of all transactions in 2024, making placement near airports and other major transportation hubs a significant consideration. The recovery in global travel, rising demand for luxury vehicles and SUVs, and expansion in Europe and the Asia Pacific region are market factors relevant to an Avis Rent A Car franchise.

The initial franchise fee is $45,000. Another source lists an Initial License Purchase Fee of $50,000 or $30,000, depending on agreement terms or market conditions. Estimated total initial investment ranges from $625,500 to $1,588,400. Other cited ranges are $606,000 to $1,568,000 and $605,500 to $1,568,400. The variation may reflect location, fleet size, and market conditions. An FDD example for a 30 car fleet serving a territory of 55,000 people includes an Initial License Purchase Fee of $50,000 or $30,000; construction, remodeling, decorating, and leasehold improvements of $15,000 to $50,000; furniture, fixtures, other fixed assets, and equipment of $15,000 to $28,000; signage of $10,000 to $25,000; and three months of rent and security deposits of $9,000 to $18,000. Vehicle insurance premiums range from $15,000 to $37,500. Grand opening advertising and promotion cost $2,000 to $5,000. Office supplies require $500 to $2,000, and miscellaneous opening costs range from $1,000 to $3,000. Automobiles are the largest expense, at $450,000 to $1,290,000 plus interest. Travel and living costs during initial training range from $3,000 to $7,500. Additional funds for the first three months of operation are estimated at $55,000 to $72,400. Some sources identify the advertising or national brand fund fee as "n.a.", indicating that a separate charge may not be disclosed. Applicants must show a minimum net worth of $1.5 million, at least $300,000 in liquid capital, and strong creditworthiness for fleet financing. The franchise is distinct from an Avis Independent Operator relationship. That arrangement is not a franchise, has no royalty or franchising fees, and has start up expenses of approximately $8,000 because Avis supplies the rental vehicles. This overview concerns the Avis Rent A Car franchise opportunity.

Franchisees are responsible for daily operating costs, including staffing, vehicle maintenance, customer service, inventory management, and planning for seasonal demand. They hire their own employees and are expected to build a team that reflects the "We Try Harder" service values through local management and continuing training. New franchisees receive an initial two week training program at the Avis corporate training facility. One source specifies 4,436 hours of classroom training covering Avis procedures, brand standards, and customer service methods. Avis support includes initial training, goal setting, sales techniques, marketing programs, and assistance from experienced staff serving as a liaison with Avis Corporation. Franchisees also receive access to a proprietary reservation system connecting their locations with customers worldwide. The franchise agreement describes operation of a specific car fleet size within a defined territory. Territory rights and market exclusivity terms are relevant to protecting the franchisee from direct competition within the brand and to supporting long term market share. Suitable locations may include areas with substantial business travel, tourism, major transportation hubs such as airports, and growing metropolitan markets with limited competition from other national rental brands. The materials do not specify whether absentee ownership is permitted. Because the business requires daily management, employee oversight, vehicle logistics, and maintenance, a hands on owner operator or a highly experienced and dedicated management team appears necessary.

The company had an estimated 21.76% market share by revenue in Q1 2025. These corporate figures relate to the parent company rather than a particular franchise location. The 2025 Franchise Disclosure Document data reported 1,900 Avis Rent a Car units, consisting of 186 franchised owned units and 1,714 company owned units. Avis Rentals reported 1,396 locations in the United States as of July 2025, a 12% increase from the previous year. The increase came through new openings and collaborations. Approximately 51% of rentals from Avis locations in 2024 came from corporate contracts or affiliations, which may provide a recurring source of demand. The large fleet investment makes operating efficiency especially significant. Market growth from $129.66 billion in 2024 to a projected $300.03 billion by 2033 provides broader sector context, but the performance of an individual location will depend on its market and operating results.

Avis Rent a Car reported 1,900 units in 2025, including 186 franchised owned units and 1,714 company owned units. Its United States network reached 1,396 locations as of July 2025 after growing 12% from the previous year through new openings and collaborations. Globally, Avis had approximately 5,500 rental locations in 165 countries as of 2019, while Avis Budget Group managed around 10,250 locations worldwide as of September 2025. In July 2025, CEO Brian J. Choi introduced "Avis First," a premium product that he called "a category defining product for the rental car industry." The offering was live in over a dozen locations and was planned for more than 50 markets by the end of 2025. Avis also has a history of technology development. In 1972, it introduced Wizard, described as the industry's first computer based information and reservations system. In 1987, the company introduced Roving Rapid Return, a handheld computer terminal intended to let customers bypass traditional rental counters and improve convenience.

Franchisees account for 186 of Avis Rent A Car's 1,900 locations. Cost figures are based on the 2026 Franchise Disclosure Document.

2026 FDD VERIFIED

Franchising since 1946 · 1,900 locations

Investment

$625,500 to $1.6M

Franchise Fee

$50,000

Total Units

1,900

186 franchised

SBA Lending Activity for Avis Rent A Car

Loan Activity Score

This franchise has not yet been scored by the Franchise Performance Index. Scores are calculated based on public FDD data, SBA loan performance, and system level metrics.

Key Highlights

1,900 locations nationwide

Data Insights

Key performance metrics for Avis Rent A Car based on SBA lending data

Investment Tier

Premium investment

$625,500 to $1,588,400 total

Why Avis Rent A Car Doesn't Appear in Public SBA Data

The SBA 7(a) program publishes loan level data for every approved franchise borrower. Avis Rent A Car does not currently appear in those public records, and that absence carries useful information for prospective franchisees evaluating this brand.

Likely explanations for the absence

  • Established brands often rely on internal franchisee financing networks, conventional bank lines, or franchisor provided lease guarantees rather than SBA 7(a), keeping them out of the public SBA dataset.

Absence from SBA records does not mean a brand is un fundable. It typically means the franchise system uses alternative capital sources, or that current franchisees self fund, secure conventional bank financing, or roll over equity from a prior business sale rather than going through an SBA guaranteed 7(a) loan. For prospective Avis Rent A Car franchisees, the practical question is which financing path actually closes for this brand's profile.

Data window: SBA 7(a) approvals reported through the most recent FOIA release. Absence of Avis Rent A Car from this window does not reflect lender denial. It reflects no 7(a)-program activity recorded for this brand in the public dataset.

Payment Estimator

Loan Amount$500K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$6,475

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Avis Rent A Car, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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1 FDD Available for Avis Rent A Car

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Avis Rent A Car

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman