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Payless
Payless Car Rental franchises operate businesses renting automobiles without drivers to the general public for periods of 180 days or less under the Payless trademarks and a uniform system. Franchisees provide additional services like loss damage waivers, optional insurance, child seats, and refueling, using the Wizard computerized reservation system, and participate in corporate rate programs. The business model serves business and leisure customers in competitive markets, often at non-airport locations, competing with national chains and independents.
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Franchise Costs
7.5% royalty + 0% ad fund + $327-$1,204/mo technology, support, admin, and 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 dataPayless Franchise Analysis
Ever wondered if a tiny network backed by a rental giant like Avis Budget could be your ticket to steady wheels in the car rental game? Payless has been franchising since 1971, with just a dozen franchise spots amid 97 corporate-owned units, hinting at a selective model in a cutthroat industry. But with no Item 19 earnings disclosure and some legal shadows, does this setup deliver reliable revenue or demand heavy lifting from owners? Unlock the data to see if it's primed for growth or stuck in neutral.
Item 7 lays out the hefty upfront: $625,500 to $1,608,400 total investment, including a flat $50,000 franchise fee. Real estate drives the high end, especially for those non-airport spots targeting business and leisure renters. Ongoing fees bite at 7.5% of gross revenue royalty, no ad fund contribution, plus $327-$1,204 monthly for tech like the Wizard system, support, admin, and network access. No Item 19 means no official sales or profit benchmarks, forcing buyers to dig elsewhere—maybe corporate parallels or FDD Item 20 notes on transfers/terminations—for viability clues.
System health raises flags: flat at 12 franchises from 2023-2024 (0% growth), dwarfed by 97 corporates, suggesting limited expansion appetite. FDD litigation disclosures include two California suits over worker misclassification and one on Budget ops misreps, potentially signaling operational headaches. For investors eyeing vehicle rental, Payless offers brand leverage without airport premiums but demands $1M+ liquidity (per Item 7) and navigating competition from Hertz, Enterprise giants. It's a niche play for experienced operators, but stagnation and disclosure gaps make it riskier than flashier chains—vet local markets hard before committing.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Payless Compares
Key Insights
- Higher investment than 100% of Vehicle Rental franchises
- Top 10 largest franchise system in Vehicle Rental
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Payless Current | $626K – $1.6M | $50K | 7.5% | 12 |
| PacLease | $454K – $904K | $4K | 1.0% | 437 |
| U-Save Car & Truck Rental | $168K – $1.5M | N/A | 6.0% | 72 |
| Fireside RV Rental | $38K – $80K | $35K | 10.0% | 37 |
| Priceless Car and Truck Rental | $214K – $1.8M | $30K | 4.0% | 37 |
| Priceless Car and Truck Rental | $315K – $1.6M | $30K | 4.0% | 12 |
Vehicle Rental Average 7 franchises | $283K – $1.3M | $33K | 5.5% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 7 Vehicle Rental 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
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Unlock location growth dataFranchisee Contacts
12 franchisee contacts on file from official FDD filings.
12 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Two cases alleging misclassification of agency operators (licensees) as independent contractors under California labor laws, and one case alleging misrepresentations about the operation and closure of a Budget rental location.
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 Payless franchise ranges from $625,500 to $1,608,400. This includes a franchise fee of $50,000. Ongoing royalty fees are 7.5% of gross sales.
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