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AVIS
Avis franchises allow operators to rent automobiles without drivers to the general public for periods of 180 days or less under the Avis trademarks, utilizing a uniform Rent A Car System with centralized reservations via the Wizard system. Franchisees must offer required products and services such as loss damage waivers, optional insurance, child seats, and navigation devices, and participate in corporate rate programs for national accounts. The business model targets business and leisure customers in a competitive market including national chains and local independents, with demand varying by population density and seasonality.
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Franchise Costs
7.5% royalty + 0% ad fund + $369-$1,288/mo technology/network fees
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataAVIS Franchise Analysis
Can a car rental icon like Avis deliver franchise returns in an era dominated by apps and sharing economies? With nearly eight decades of franchising under Avis Budget Group, the system's modest expansion and SBA lending footprint hint at underlying viability, yet termination-heavy litigation and absent earnings data spark caution. What do these FDD signals really mean for your capital?
Item 7 pegs total investment at $625,500-$1,588,400 for a typical location, driven by real estate, fleet acquisition, and $50,000 franchise fee—steep for automotive services where averages hover $500K-$1M. Royalties consume 7.5% of gross billings with zero ad fund, offset by $369-$1,288 monthly tech/network fees for the Wizard reservation system. No Item 19 disclosure is a major hurdle: without validated revenue or profit reps, you're blind on medians—expect $1M+ AUVs from industry benchmarks, but high seasonality and competition from Hertz, Enterprise, and locals erode margins in low-density spots.
Growth from 169 to 186 franchised units (+10% 2023-2024) outperforms stagnant peers, but the small 186-unit base signals corporate dominance over franchise expansion. 26 SBA loans averaging $490,477 reflect hefty financing (vs. category ~$400K), with low volume implying selective lending. Three transfers and litigation focused on terminations/misrep suggest operational friction—ideal for experienced operators in high-traffic airports, but risky for novices amid $1M+ upfront and volatile travel demand.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How AVIS Compares
Key Insights
- Higher investment than 92% of Automotive Services franchises
- Top 10 largest franchise system in Automotive Services
- Higher than average SBA loan default rate in Automotive Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
AVIS Current | $626K – $1.6M | $50K | 7.5% | 186 |
| Tire Pros | $12K – $137K | $7K | N/A | 644 |
| MICHELIN RETREAD TECHNOLOGIES (MICHELIN COMMERCIAL SERVICE NETWORK) | $189K – $4.3M | $3K | N/A | 340 |
| CHRISTIAN BROTHERS AUTOMOTIVE | $515K – $650K | $85K | 50.0% | 302 |
| CHRISTIAN BROTHERS AUTOMOTIVE | $530K – $645K | $135K | 50.0% | 265 |
| TOMMY'S EXPRESS | $5.0M – $8.5M | $50K | 4.0% | 206 |
Automotive Services Average 24 franchises | $456K – $1.0M | $45K | 12.8% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 24 Automotive Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+8 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for AVIS franchisees (2013 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
26 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
187 franchisee contacts on file from official FDD filings.
187 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily termination disputes with former licensees and independent operators, and one misrepresentation dispute regarding franchise location operations.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a AVIS franchise ranges from $625,500 to $1,588,400. This includes a franchise fee of $50,000. Ongoing royalty fees are 7.5% of gross sales.
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