About Hertz Franchise
Hertz is one of the most recognized car rental brands in the world, with a franchise history stretching back to 1925.
The brand is a wholly owned subsidiary of Hertz Global Holdings, Inc.
and operates a vast global network of rental locations serving business travelers, vacationers, and local renters at airports, downtown locations, and neighborhood offices.
Hertz Franchise Cost & Fees
Minimum Investment
$879K
Average Investment
$8.4M
Maximum Investment
$15.9M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 - $125,000 | One-time payment upon signing |
| Royalty Fee | 6-9% of Gross Receipts (9% Airport, 7% Non-Airport) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | No separate advertising fund; Program Assessments may be charged (currently none) | National brand fund |
| Total Investment Range | $879,300 – $15,874,000 | Includes build-out, inventory, working capital |
The investment range of $879K–$15.9M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6-9% of Gross Receipts (9% Airport, 7% Non-Airport)) and marketing fee (No separate advertising fund; Program Assessments may be charged (currently none)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $125,000 |
| Training Expenses | $3,000 | $3,000 |
| Passenger Cars (fleet of 30-300) | $750,000 | $15,000,000 |
| Courtesy Vehicles | $55,000 | $350,000 |
| Equipment and Supplies | $5,000 | $25,000 |
| Insurance | $5,000 | $45,000 |
| Professional Fees | $3,000 | $10,000 |
| Computer System, Hardware and Software | $11,500 | $250,000 |
| Optional Software | $1,500 | $15,000 |
| Business License | $100 | $500 |
| Miscellaneous Installation Fees | $200 | $500 |
| Additional Funds - 3 months | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 5% of average annual gross sales for the 3 years preceding transfer |
| Renewal Fee | $5,000 to $25,000 |
| Audit Fee | Cost of audit if underreported by 2%+ plus interest at 5% (or max rate allowed by law) |
| Reservation Charges | $3.84-$6.30 per passenger car reservation |
| Travel Industry Commissions | 0-30% of gross rental charges |
| Travel Voucher Service Fee | 5% of Net Proceeds |
| EDI Cost | $8.00 per reservation |
| Rental Processing Fee | 2.5% Auto Feed / 4.6% manual feed for insurance replacement |
| Guaranteed Charge Card Service Fees | 1-5% of gross rental charges |
| Central Bill Charge Card Service Fees | 2.5-6% of gross rental charges |
| Direct Bill Charge Card Service Fees | 3-6% of gross rental charges |
| Reservation Assignment Fee | $3-$7 per reservation |
| Liquidated Damages for Non-Compliance | $100/day + $5,000 if persists 90+ days |
| Holdover Fees | Then-applicable Franchise Fee and other fees |
| Value Proposition Services | $0-$150,000 (optional) |
| Early Termination Fee | Minimum annual fee x remaining years on term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 60+ hours total (classroom + on-the-job) |
| Classroom Training | Approximately 50 hours across multiple subjects |
| On-the-Job Training | 8 hours airport/off-airport counter observation |
| Training Location | Franchisor HQ (Estero, FL), your designated location, or online |
| Additional Training | Subjects include customer service/sales (20 hrs), fleet operations (8 hrs), back office (8 hrs), counter policies (3 hrs), brand service (3 hrs), marketing sales (1 hr), revenue management (1 hr), plus online modules. No formal training staff maintained. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies - identified by city name or political subdivision(s) |
| Description | You will not receive an exclusive territory. Franchisor retains rights to use the System and Marks within and outside your Territory. Affiliates operate Dollar and Thrifty competing brands in your territory. Parent may operate car sharing (Hertz 24/7), car sales, Rent2Buy, truck rentals, and other businesses in your territory. May be required to open additional locations within territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Set forth in Attachment A to Franchise Agreement (varies per franchisee) |
| Renewal Term | Successive renewal periods as set forth in Attachment A |
| Renewal Fee | $5,000 to $25,000 |
| Renewal Conditions | Written notice 9-12 months before expiration, not in default, timely payments, material compliance, met performance requirements, sign new agreement, pay renewal fee, refurbish to current standards, execute general release, continuing program exists |
| Transfer Fee | 5% of average annual gross sales for 3 years preceding transfer |
| Transfer Conditions | Full compliance, bona fide written offer, transferee has qualifications/resources, deposit with Credit Department, franchisor has right of first refusal (60 days + additional time) |
| Termination for Cause | Curable: 30 days for non-payment/insurance/pricing/Marks/general compliance, 10 days for insurance, 3 days for inspection access. Non-curable: bankruptcy, insolvency, unauthorized transfer, discontinue operations 5+ days, material misrepresentation, fail to open on time, understate Gross Receipts by 3%+, fail to complete training, felony conviction, fraud, 3+ defaults in 12 months, fail to maintain minimum fleet, material financial deterioration |
| Non-Compete Period | 12 months |
| Non-Compete Details | 12 months after transfer, termination, expiration, or ceasing to operate. Cannot own, engage in, or have interest in any Vehicle Rental Business within: (i) the Territory, (ii) 100 miles of the Territory border, (iii) territory of any other Hertz franchisee, (iv) 10-mile radius of any other Hertz franchisee territory, or (v) 10-mile radius of any Hertz Business operated by franchisor or affiliate. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Must devote significant personal time, energy, and direction. Must employ a manager who: (i) is disclosed to franchisor, (ii) completes training, (iii) has sufficient vehicle rental experience, and (iv) devotes full time. Manager not required to have equity interest. |
| Required Suppliers | Must purchase from approved suppliers: Hertz System Standard Rental Agreements, counter automation software (6 approved systems), signs, uniforms. Must subscribe to Hertz Reservations System. Must accept designated credit cards and centrally billed charge cards from parent. |
| Supply Restrictions | Approximately 15% of purchases to establish and 10% to operate must be from approved suppliers. Parent derived $974,446 from credit card/back-office services, $2,647,875 from fleet purchases, and $684,390 from revenue management services from franchisees in 2024. |
| Franchisor Revenue from Suppliers | Parent total revenue $9,048,817,069.53 in fiscal year ended December 31, 2024. Revenue from franchisee-related services was minimal percentage of total. |
Hertz Franchise Earnings — Item 19
Hertz does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Hertz does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Hertz Litigation & Risk Flags
Clean Litigation RecordHertz has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Hertz System Growth
Total Units
3485
Franchised
400
Company-Owned
3085
Hertz currently operates 400 franchised locations and 3085 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 54 | 8 | 325 |
| 2023 | 16 | 21 | 384 |
| 2024 | 40 | 24 | 400 |
Transfers: 16 | Closures: 24
Public Figures (Item 18)
The following public figures are associated with this franchise: Tom Brady, Yvonne Orji
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Hertz Franchise — FAQ
The total investment to open a Hertz franchise ranges from $879,300 to $15,874,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000 - $125,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Hertz charges a royalty fee of 6-9% of Gross Receipts (9% Airport, 7% Non-Airport) of gross sales, plus a No separate advertising fund; Program Assessments may be charged (currently none) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Hertz Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Hertz to ensure you have the most up-to-date version.
Hertz does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Hertz has been franchising since 1925. The FDD shows an investment range of $879,300-$15,874,000, a 6-9% of Gross Receipts (9% Airport, 7% Non-Airport) royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 - $125,000 and the total investment ranges from $879,300 to $15,874,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Hertz and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Hertz or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com