Hertz franchise
2023 filing · March 30, 2023Growing
Hertz at a glance
A car rental business renting cars under the Hertz name within a set territory. At the end of 2022 there were 3,591 Hertz locations in the US, 389 franchised and 3,202 company-owned, so most are run by the company itself.
The business
- Franchisor
- Hertz System, Inc
- The company that sells the franchises
- Franchisor based in
- Estero, Florida
What you pay
- Cost to open
- $879K–$15.8M
- Excluding real estate
- Franchise fee
- $25K–$100K
- For a new franchisee with a starting fleet of 30 to 300 cars
- Royalty
- 6%–9%
- 6% to 9% of gross receipts, paid monthly, set by market with a yearly minimum
- Renewal fee
- $5,000 to $10,000
- When the agreement ends and you sign again
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 3,591
- Franchised and company-owned
- Franchised
- 389
- Company-owned
- 3,202
- Change in 3 years
- +114
- Franchised locations, 2020–2022
- States
- 50
- Most in California, Florida and Texas
From Hertz System, Inc’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Hertz among all franchises with the same figure.
| Figure | Hertz | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $8,359,150 | Costs more than 98% of franchises |
| Franchise feePaid once, when you sign | $25,000 | Lower than 82% of franchises |
| RoyaltyShare of sales paid to the franchisor | 9% | Higher than 94% of brands with a set rate |
| US locationsFranchised and company-owned | 3,591 | More than 99% of franchises |
How much a Hertz franchise costs
Opening excluding real estate costs an estimated $879,300 to $15,839,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are passenger cars ($750,000 to $15,000,000) and courtesy vehicles ($55,000 to $350,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $25,000 | $100,000 | |
| Training Expenses | $3,000 | ||
| Passenger Cars | $750,000 | $15,000,000 | |
| Courtesy Vehicles | $55,000 | $350,000 | |
| Equipment and Supplies | $5,000 | $20,000 | |
| Insurance | $5,000 | $40,000 | |
| 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 | |
| Total | $879,300 | $15,839,000 | |
Source: Hertz System, Inc, 2023 filing, page 51
Hertz franchise fee
The franchise fee is $25,000 to $100,000, for a new franchisee with a starting fleet of 30 to 300 cars. You pay it when you sign the franchise agreement.
Source: Hertz System, Inc, 2023 filing, page 42
Royalty and ongoing fees
| Royalty | 6% to 9% of gross receipts, paid monthly, set by market with a yearly minimum. |
|---|---|
| Renewal Fee | $5,000 to $10,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Hertz System, Inc, 2023 filing, page 43
Other fees as filed, from page 45. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Hertz does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Hertz System, Inc, 2023 filing, page 91
SBA loans to Hertz franchisees
Lenders approved one SBA 7(a) loan for a Hertz franchisee in 2017, for $1.4M. It was charged off.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Hertz | Typical franchise |
|---|---|---|
| GrowthNet change in franchised locations | +13% / +41% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 2.3% / 25% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0.4% | 0% / 0% |
How Hertz compares
Typical means the median: half of brands are above it, half below.
| Figure | Hertz | Typical franchise |
|---|---|---|
| Cost to open, low end | $879K | $222K |
| Cost to open, high end | $15.8M | $477K |
| Franchise fee | $25K | $40K |
| Royalty | 9% | 6% |
| US locations | 3,591 | 21 |
| Shares earnings figures | No | 2,147 of 3,352 |
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 282 (+7) | 3,426 | +41 | −34 |
| 2021 | 343 (+61) | 3,232 | +88 | −27 |
| 2022 | 389 (+46) | 3,202 | +54 | −8 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
Hertz is number 22 on our list of the largest franchises in the US by locations.
More in the guides: franchise failure rates.
Source: Hertz System, Inc, 2023 filing, page 92
Where Hertz locations are
At the end of 2022, Hertz had locations in 55 states and territories. The most are in California, Florida and Texas.
- California504
- Florida331
- Texas263
- New York259
- Illinois138
- Pennsylvania132
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 6 | 498 | 504 |
| Florida | 4 | 327 | 331 |
| Texas | 1 | 262 | 263 |
| New York | 5 | 254 | 259 |
| Illinois | 0 | 138 | 138 |
| Pennsylvania | 14 | 118 | 132 |
| Massachusetts | 3 | 116 | 119 |
| Georgia | 27 | 77 | 104 |
| New Jersey | 3 | 97 | 100 |
| Ohio | 37 | 62 | 99 |
All 55 states
| Michigan | 97 |
|---|---|
| North Carolina | 87 |
| Virginia | 83 |
| Arizona | 73 |
| Colorado | 72 |
| Tennessee | 68 |
| Connecticut | 60 |
| Louisiana | 59 |
| Maryland | 56 |
| South Carolina | 53 |
| Washington | 53 |
| Missouri | 49 |
| Nevada | 48 |
| Indiana | 44 |
| Alabama | 43 |
| Wisconsin | 40 |
| Hawaii | 39 |
| Kansas | 39 |
| Oregon | 39 |
| Iowa | 36 |
| Oklahoma | 36 |
| Utah | 32 |
| New Mexico | 29 |
| Kentucky | 28 |
| Arkansas | 26 |
| Minnesota | 23 |
| Montana | 22 |
| New Hampshire | 22 |
| Mississippi | 20 |
| Rhode Island | 19 |
| Idaho | 18 |
| Delaware | 17 |
| North Dakota | 16 |
| Nebraska | 15 |
| Maine | 14 |
| District of Columbia | 13 |
| West Virginia | 11 |
| Wyoming | 9 |
| South Dakota | 6 |
| Vermont | 6 |
| Alaska | 5 |
| Northern Mariana Islands | 5 |
| Puerto Rico | 5 |
| Guam | 4 |
| US Virgin Islands | 3 |
Source: Hertz System, Inc, 2023 filing, page 93
Who owns Hertz?
Hertz franchises are sold by Hertz System, Inc. It is a subsidiary of Hertz Corporation.
From Hertz System, Inc’s 2023 filing, page 10.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 24–40. |
|---|---|
| Bankruptcy | The franchisor, its parent The Hertz Corporation and other Hertz affiliates filed for Chapter 11 in May 2020. Franchised Hertz locations were not part of the case. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Hertz System, Inc, 2023 filing, litigation on pages 24–40, bankruptcy on page 41
Hertz filings
The figures on this page come from Hertz System, Inc’s 2023 filing, issued March 30, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | March 30, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
