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Hertz

Hertz offers flexible car rental services to commercial and leisure customers across 10,000 car hire locations in 145 countries

£ 116,000 Minimum Investment

Hertz In Brief

  • Description

    Hertz offers flexible car rental services to commercial and leisure customers across 10,000 car hire locations in 145 countries

  • Business Type

    Motoring Services, Retail, Travel & Leisure, Travel

  • Minimum Investment

    £ 116,000

About Hertz

Founded in 1918 in Chicago, USA, Hertz Rent A Car began life as a one-man business with a dozen cars for hire. Since then, Hertz has grown, changed and innovated until today it boasts 10,000 car hire locations across six continents and 145 countries – including the first global car rental business in China. The largest general use airport rental car provider in the world, Hertz is a globally recognized and trusted brand.

Hertz founder, Walter Jacobs, invented the car rental industry and though the business has seen changes in ownership over the years, that tradition of innovation has always been retained. Hertz pioneered airport car rental locations (a sector which they continue to lead) and was the first in the market to introduce travel agent booking systems, an express service, onboard navigation, instant return, and online check-in.

Committed to superior customer service and cost-efficient vehicle leasing, Hertz offers both commercial and leisure hire options, with an impressive #1 Club Gold Service for its most loyal customers. Providing every option from daily to long term car hire, customers can choose from a wide range of vehicles from the standard ‘Fun’ or ‘Family’ cars and vans through to the ‘Prestige’ and ‘Dream’ collection, which offers daily rental of Porsches, Mercedes, Bentleys, and even a Lamborghini Huracan.

Having previously concentrated on their corporate model, Hertz is now actively seeking franchisees in the US, Canada, and Europe.

How much does a Hertz franchise cost?

Hertz requires franchisees to have a net worth of at least £395,000 and access to more than £118,000 in liquid capital. These figures don’t cover the full cost of launching and operating a new Hertz franchise business – those costs will vary and can range from £445,000 upwards. Hertz bases the exact calculation on a number of variables including the location and size of the franchise territory, size of the fleet, number of national account holders in the area and existing or potential local hotel accommodation and airport passenger traffic.

Included in those costs is the initial Hertz franchise fee (or ‘licence fee’) of £20,000 to £43,000, which again depends on the size and location of the new franchise business.

Franchisees then pay a monthly licence fee (10 per cent of revenue) to cover the use of the Hertz branding along with brand support and promotion. As the car rental market is a capital intensive business, Hertz franchisees should also have a good credit rating in order to secure fleet financing.

 

How do Hertz franchisees obtain fleet vehicles?

Each Hertz franchise must supply vehicles that meet strict standards and specifications, including age, size, mileage, etc. Vehicles are obtained from a range of different sources, including local car dealerships, auctions, fleet leasing companies and taking advantage of Hertz’s relationships with manufacturers. Hertz also has an active Fleet Remarketing Department.

 

What do you get for your Hertz franchise fee?

The Hertz franchise agreement has a five-year term, which is renewable subject to the franchisee meeting Hertz’s performance requirements. Hertz franchise owners benefit from access to preferential rates and procurement discounts from major rental fleet and facilities suppliers (although Hertz is quick to point out they don’t assist with fleet financing), along with proven and established operational programmes and procedural support for pricing and promotions.

Every Hertz franchise UK and worldwide has an integrated point-of-sale system linked to the Hertz Reservation System and Customer Contact Centre along with participation in other booking channels including Hertz.com, high street travel agents’ systems and major online travel agencies. Hertz franchisees’ fleets also receive practical support including coverage by 24-hour roadside assistance.

 

How much does a Hertz franchisee earn and what profits can they expect to make?

Hertz franchise profitability figures are not released until applicants attend a Discovery Day at Hertz head office.

 

What training is provided for Hertz franchisees?

New Hertz franchise owners take part in a three-six week training programme, which is a comprehensive introduction to the business. The initial onboarding training takes place before the launch of the new Hertz franchise business, with sessions held at Hertz worldwide head office in New Jersey, USA.

Further training includes hands-on training at a Hertz zone office, along with access to webinars and online training resources which are available pre and post-launch, supporting ongoing training as required.

What marketing support is provided for Hertz franchisees?

Hertz is a global brand, and their dedicated global sales team are responsible for marketing Hertz car rental services worldwide. Promotional services to support every Hertz franchise include TV, radio and print advertisements along with coupons, flyers, image and signage support and airport displays.

The Hertz franchise network also benefits from relationships with tour businesses, travel agents, hotels and airline partners. Hertz offers corporate and business accounts and runs a frequent renter programme to attract and retain lucrative commercial as well as leisure customers.

 

Do Hertz franchisees need car rental industry experience?

Not necessarily, though a background in the car rental business is obviously a plus. Hertz is looking for franchisees with experience in the travel or automotive industry, and an understanding of buying and selling cars – a previous role as a car dealer is a definite plus.

Potential franchisees should display communication and leadership skills along with the energy, drive, and enthusiasm to open their own franchise business. Combining entrepreneurial spirit with great local business and social connections, applicants should have demonstrable sales skills and the desire and ability to manage their own operation.

 

Is running a Hertz franchise a full-time job?

Yes, although Hertz franchise owners may choose to employ an experienced manager (approved by Hertz) to undertake the day-to-day operations of the business.

 

Where are the new territories that Hertz are looking to open new franchise locations?

Hertz has new global opportunities across the franchise network. For more details on specific locations available as Hertz franchise UK opportunities, contact the Hertz team by completing the enquiry form on this page.

 

Why choose to invest in a Hertz franchise?

Hertz car rental sites have been in operation for over 90 years, and in this time have become a globally recognised and trusted brand, making them the largest airport car rental provider in the world.

The Hertz franchise model has been proven over time, and new Hertz franchises benefit from this immediate brand recognition, along with ongoing worldwide and local advertising campaigns and promotions to attract new customers.

Hertz franchisees also benefit from national and international commercial accounts with car rental requirements in their area, along with impressive and valuable replacement car contracts with insurance companies. In this way, new franchises experience immediate traction with sources of business they would find hard to generate as a sole local trader.

 

How can I find out more information about owning my own Hertz franchise?

After receiving Hertz franchise information and making an initial enquiry by completing the enquiry form on this page, applicants can expect their application to run a Hertz franchise UK site to be validated within a week.

A telephone interview will then be arranged, and if both parties wish to proceed, the applicant will be invited to a Discovery Day at Hertz headquarters in Park Ridge, New Jersey. The franchisee’s business plan will then be reviewed, and once corporate approval has been received, the new Hertz franchise is launched.

The legal documentation and approval process takes two to three months from start to finish.

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