How much does a Hertz franchise cost?
A new U.S. Hertz Vehicle Rental Business requires an estimated initial investment of $879,300 to $16,249,000, based on the Hertz System, Inc. Franchise Disclosure Document issued March 20, 2026. The range is based on a starting fleet of 30 to 300 passenger cars and excludes Real Estate & Improvements, which Hertz says cannot be estimated because facilities differ substantially by location.
2026 FDD Item 7 total for establishing a new Hertz Franchised Business, excluding Real Estate & Improvements. The disclosed total includes the Initial Franchise Fee, passenger-car fleet, Courtesy Vehicles, technology, insurance, pre-opening costs, and Additional Funds for three months. Source: 2026 Hertz System, Inc. FDD, Item 7, pp. 7-1–7-6.
Data basis. Legal franchisor: Hertz System, Inc., a wholly owned subsidiary of The Hertz Corporation. FDD issuance date: March 20, 2026. Cost sections reviewed: Items 5, 6, 7, 8, 10, 11, and 17. The Item 7 range covers one new Hertz Vehicle Rental Business with a 30-to-300-car starting fleet; airport, non-airport, multiple-brand, and existing-business acquisitions create different obligations without separate all-in Item 7 totals. Information was checked July 22, 2026.
Hertz maintains an official franchise opportunities page. No matching 2026 FDD was located on an official Hertz-controlled public page, so FDD references in this article are unlinked Item-and-page citations. As a separate current-offer check, the Wisconsin Department of Financial Institutions active-registration list showed Hertz System, Inc. with an expiration date of March 30, 2027 when checked.
Capital snapshot
What is included in the $879,300 to $16,249,000 range?
The disclosed total includes the startup fleet, Initial Franchise Fee, Courtesy Vehicles, equipment, insurance, technology, smaller pre-opening expenses, and three months of Additional Funds. It does not include Real Estate & Improvements, and it does not estimate the extra vehicle inventory required for operating multiple brands.
Fleet, operating assets, and working capital
| Item 7 category | 2026 disclosed range | What changes the amount | FDD reference |
|---|---|---|---|
| Passenger Cars | $750,000–$15,000,000 | Starting fleet of 30 to 300 current-model cars; vehicle type, purchase price, and financing terms. | Item 7, pp. 7-1–7-2 |
| Courtesy Vehicles | $55,000–$350,000 per location | Required for Airport Rental Locations; market size, airport layout, rental-facility location, and vehicle size. | Item 7, pp. 7-1–7-2 |
| Equipment and Supplies | $5,000–$25,000 | Uniforms, office equipment, telephone system, desks, files, rental agreements, forms, and similar items. | Item 7, pp. 7-1–7-3 |
| Insurance | $5,000–$45,000 | Initial deposit varies with carrier, territory, fleet size, management experience, losses, lender, lessor, and landlord requirements. | Item 7, pp. 7-1–7-3 |
| Computer System, Hardware and Software | $11,500–$250,000 | From a one-user Non-Airport Rental Location system to a 30-user system serving multiple locations or a high-volume Airport Rental Location. | Item 7, pp. 7-1, 7-4–7-5 |
| Additional Funds — 3 months | $20,000–$50,000 | Staffing, first month’s facility rent, possible facility deposit, operating supplies, Franchise Fees and assessments, fuel, and required-card issuer fees. | Item 7, pp. 7-1, 7-5 |
Other pre-opening line items
| Item 7 category | 2026 disclosed amount | Payment timing | FDD reference |
|---|---|---|---|
| Initial Franchise Fee | $25,000–$500,000 | At Franchise Agreement execution, or under an approved installment arrangement of no more than three years. | Items 5 and 7, pp. 5-1, 7-1–7-2 |
| Training Expenses | $3,000 | As arranged; franchisee pays travel and living expenses for required attendees. | Item 7, pp. 7-1–7-2 |
| Professional Fees | $3,000–$10,000 | As required for attorneys, accountants, consultants, and location-specific matters. | Item 7, pp. 7-1, 7-4 |
| Optional Software | $1,500–$15,000 | Lump sum or deposit and monthly payments, depending on the approved supplier. | Item 7, pp. 7-1, 7-5 |
| Business License | $100–$500 | Before commencing business; paid to governmental authorities. | Item 7, pp. 7-1, 7-5 |
| Miscellaneous Installation Fees | $200–$500 | As needed for gas, electric, water, sewer, and telephone service. | Item 7, pp. 7-1, 7-5 |
| Real Estate & Improvements | Not estimated | As required; paid to seller or landlord. Excluded from the official Item 7 total. | Item 7, pp. 7-1, 7-3–7-4 |
Additional Funds are not added on top of $879,300 to $16,249,000. The $20,000 to $50,000 working-capital line is already part of the Item 7 total. Hertz estimates it for three months but states that more working capital may be needed during or after the startup phase.
Why is the Hertz investment range so wide?
The principal reason is the passenger-car fleet. At the low endpoint, Passenger Cars represent $750,000 of the $879,300 total; at the high endpoint, they represent $15,000,000 of the $16,249,000 total. Fleet size, vehicle mix, location type, computer-system scale, Courtesy Vehicles, and the undisclosed premises cost then widen the buyer’s actual capital requirement.
The bars use the low or high amount for every disclosed Item 7 line and reconcile to the official total. Real Estate & Improvements are excluded from both totals.
Interpretation: Passenger Cars account for more than 85% of either official endpoint. “All remaining Item 7 lines” is a derived sum of Training Expenses, Equipment and Supplies, Insurance, Professional Fees, Computer System, Optional Software, Business License, Miscellaneous Installation Fees, and Additional Funds. Source: 2026 Hertz System, Inc. FDD, Item 7, pp. 7-1–7-6.
Real Estate & Improvements can be a material additional obligation. Hertz identifies parking, customer and office space, possible car-wash, maintenance and fueling facilities, approximately $3,500 of Hertz signage, and airport-specific facility requirements, but it does not provide an all-in premises range. A site-specific facility budget therefore cannot be derived from the official total.
When is the money paid?
Hertz’s cost obligations begin before the Franchise Agreement is signed, accelerate through fleet and site preparation, and then shift to monthly and transaction-based charges after opening. The largest payments—fleet, premises, Courtesy Vehicles, technology, insurance, and the Initial Franchise Fee—depend on the negotiated acquisition and opening schedule.
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1
Disclosure period before commitment
The 2026 FDD states that the prospective franchisee must receive the disclosure document at least 14 calendar days before signing a binding agreement or paying Hertz or an affiliate. The FTC’s FDD review guidance explains the same federal timing rule.
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2
Franchise Agreement execution
The Initial Franchise Fee is due as a lump sum at execution unless Hertz permits installments. Any deferred portion must be paid within no more than three years, carries no interest, and remains nonrefundable.
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3
Site, fleet, and systems before opening
Passenger Cars and Courtesy Vehicles are purchased as arranged; Equipment and Supplies are paid before opening; Business Licenses are paid before commencing business; Computer System, insurance, professional, utility, and premises costs arise as required.
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4
Training and opening preparation
The owner, manager, and key employees must complete required training before opening. Hertz does not separately charge for the initial training program under the Franchise Agreement, but the franchisee pays travel, living expenses, and wages; Item 7 estimates Training Expenses at $3,000.
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5
First three months and ongoing statements
Additional Funds are spent as incurred during the initial three-month operating phase. The recurring Franchise Fee and many system or transaction charges are then invoiced or deducted monthly, often within 10 days after the preceding month’s statement.
Payment sources: 2026 Hertz System, Inc. FDD cover p. i; Items 5 and 7, pp. 5-1 and 7-1–7-6; Item 11, pp. 11-7–11-8; Franchise Agreement §11.1.
What fees continue after a Hertz location opens?
The central recurring payment is the Hertz “Franchise Fee”: 7% of Gross Receipts for a Non-Airport Rental Location and 9% for an Airport Rental Location, subject to a minimum annual amount that Hertz determines from market and fleet factors before the Franchise Agreement is signed. The fee is generally payable within 10 days after the monthly statement for the preceding month.
Both percentages use the FDD-defined Gross Receipts basis. The chart does not include the separately determined minimum annual amount.
Interpretation: the Airport Rental percentage is two percentage points higher, but the total ongoing payment also depends on the FDD definition of Gross Receipts and Hertz’s location-specific minimum annual Franchise Fee. Source: 2026 Hertz System, Inc. FDD, Item 6, pp. 6-1 and 6-5.
| Operating fee | Amount or basis | Timing and condition | FDD reference |
|---|---|---|---|
| Franchise Fee | 7%–9% of Gross Receipts | Monthly statement; generally due within 10 days. Subject to a Hertz-determined minimum annual amount. | Item 6, pp. 6-1, 6-5 |
| Program Assessments | Varies | As Hertz requires for specified programs. None were being charged to new franchisees as of the 2026 FDD date. | Item 6, pp. 6-1, 6-5 |
| Insurance | Cost of procurement | As billed when Hertz procures insurance for the franchisee. | Item 6, p. 6-1 |
| Reservation Charges | $3.84–$6.30 per passenger-car reservation | Generally due within 10 days after the preceding month’s statement; no-show reservations can still be charged. | Items 6 and 8, pp. 6-1, 6-5, 8-1 |
| Travel Industry Commissions | 0%–30% of gross rental charges | Generally due within 10 days after the preceding month’s statement; negotiated rates vary by travel-industry participant. | Item 6, pp. 6-1, 6-5–6-6 |
| Travel Vouchers | 5% of Net Proceeds | Automatically deducted from the amount remitted for accepted vouchers. | Item 6, pp. 6-1, 6-6 |
| EDI Cost | $8.00 per reservation | As billed: $6.50 for TSD plus $1.50 for OKC Administration. | Item 6, pp. 6-1, 6-5–6-6 |
| Rental Processing Fee | 2.5% Auto Feed; 4.6% manual feed | As billed for Insurance and Service Replacement customers. | Item 6, p. 6-1 |
| Charge-card service fees | 1%–5%; 2.5%–6%; or 3%–6% | Deducted from related payments. The applicable range depends on guaranteed cards, Central Bill, or Direct Bill processing. | Item 6, pp. 6-2, 6-6 |
Hertz’s Gross Receipts definition is broad and includes many rental, waiver, insurance, equipment, driver, drop, parking, transportation, and other business charges, with specified exclusions. The 7% or 9% percentage should not be applied to a buyer-created sales definition.
Which cost obligations change by format or transaction?
Hertz publishes one Item 7 total range rather than separate complete totals for airport and non-airport locations. The FDD nevertheless creates material differences for an Airport Rental Location, a Multiple Brand Franchising arrangement, and the acquisition of an existing company-owned business.
Airport Rental Location
The ongoing Franchise Fee is 9% of Gross Receipts rather than 7%. Airport locations must have a Courtesy Vehicle or shuttle as applicable. Airport authorities may impose facility standards and usually charge a concession fee of at least 10%, sometimes higher, potentially with a minimum guaranteed amount and escalation factors. The FDD does not state the concession-fee denominator in that passage, so the airport agreement must be reviewed directly.
Multiple Brand Franchising
A shared passenger-car fleet may serve Hertz, Dollar, and Thrifty businesses if each brand’s fleet standards are met, but Item 7 does not estimate multi-brand vehicle inventory. At an airport, separate brand-specific Courtesy Vehicles may be required. Separate counters, off-airport facilities, and customer-facing employees can also apply unless Hertz authorizes otherwise.
Existing business acquisition
When The Hertz Corporation or an affiliate sells assets of an existing Vehicle Rental Business with a Franchise Agreement, the initial investment may be substantially higher. The FDD says the Initial Franchise Fee can be several hundred thousand dollars or more, depending on assets, fleet size, location, and transaction facts.
The official Item 7 high endpoint is not a maximum for every possible Hertz transaction. It excludes Real Estate & Improvements, does not price a multi-brand fleet, and does not cap the acquisition cost of an existing company-owned location.
Do not confuse the franchise with Hertz’s agency-operator program
Hertz also advertises an independent agency-operator opportunity with no franchise fee or large upfront franchise investment, but the official page expressly states that the arrangement is not a franchise. Its economics must not be substituted for the Hertz Franchise Agreement or Item 7 investment. The distinction is stated on the official Hertz independent agency-operator page.
Format sources: 2026 Hertz System, Inc. FDD, Items 1, 5, 6, and 7, pp. 1-4–1-5, 5-1, 6-1–6-7, and 7-1–7-6.
Does Hertz require a stated liquid-capital or net-worth minimum?
The 2026 FDD does not publish a fixed dollar minimum for Liquid Capital, Net Worth, or Non-Borrowed Funds. That absence does not remove the financial-capacity requirement: the Franchise Agreement requires sufficient vehicle financing capacity, net working capital, liquidity, and net worth in amounts Hertz considers necessary, and Item 17 says a material decrease can become a default issue.
What financing does Hertz provide?
Item 10 states that Hertz System, Inc. does not offer direct or indirect financing and will not guarantee a franchisee’s note, lease, or obligations. Item 7 separately says third-party financing may be available for passenger cars, Courtesy Vehicles, and approved computer systems, depending on credit, financial position, suppliers, banks, manufacturers, and other lenders. Third-party availability is not approval and does not reduce the official investment obligation.
Because Hertz publishes no fixed liquidity or net-worth threshold, obtain the required fleet-financing capacity, working-capital expectation, minimum annual Franchise Fee, security-deposit amount, and any owner-guarantee terms in writing for the specific Territory and Location before treating the project as financeable.
Qualification and financing sources: 2026 Hertz System, Inc. FDD, Item 7, pp. 7-2 and 7-4–7-5; Item 10, p. 10-1; Item 17, p. 17-4; Franchise Agreement §14.8.
What later fees can be triggered by renewal, transfer, default, or optional services?
Item 6 contains several charges that do not arise in every operating month but can become material when a franchisee renews, transfers, holds over, requests supplier approval, terminates early, underpays, or selects optional services.
Conditional-fee sources: 2026 Hertz System, Inc. FDD, Item 6, pp. 6-2–6-7; Item 17, pp. 17-1–17-5.
What cost terms should be verified for a specific Hertz territory?
The official range is useful only after the buyer replaces Hertz’s undisclosed and location-dependent variables with written amounts for the actual Territory, Location, fleet plan, and transaction structure.
- Confirm the current FDD and amendments. Verify that the disclosure and Franchise Agreement are still the versions being offered in the buyer’s state before signing or paying.
- Obtain the Initial Franchise Fee in writing. Confirm the fixed amount, nonrefundable status, and whether Hertz will permit installments.
- Price the full fleet and financing structure. Include minimum monthly vehicle requirements, interest, deposits, lender conditions, insurance, replacement cycles, and any Courtesy Vehicles.
- Build a separate premises budget. Item 7 excludes Real Estate & Improvements; obtain site, parking, signage, utility, zoning, construction, concession, and landlord figures directly.
- Confirm airport economics. Obtain the concession-fee basis, minimum guarantee, escalation schedule, facility standards, and shuttle requirements from the airport agreement.
- Request the minimum annual Franchise Fee. The 7% or 9% percentage is subject to a location-specific minimum that should be known before execution.
- Get current technology quotes. Confirm the approved Counter System, users, workstations, installation, training, support, maintenance, taxes, shipping, telematics, PCI service, and replacement obligations.
- Stress-test the three-month Additional Funds line. Determine whether $20,000 to $50,000 covers the actual staffing, rent, deposit, fuel, fees, card charges, and operating-supply schedule without double-counting it outside Item 7.
What is the practical capital conclusion?
The verified 2026 Hertz Item 7 range is $879,300 to $16,249,000 excluding Real Estate & Improvements. Passenger Cars drive most of that range, while airport concessions, premises, multi-brand obligations, an existing-business acquisition, and Hertz-determined financial capacity can place the actual requirement outside the published endpoints. The Initial Franchise Fee is only $25,000 to $500,000 of the startup contract; it is distinct from the fleet, working capital, liquidity, net worth, and the 7% or 9% ongoing Franchise Fee.