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Hertz is an American company that provides a vehicle rental business. Not only is the company known in the United States, but it is recognized all over the world as well. Hertz provides rentals for cars and other vehicles, such as trucks, vans, and equipment. The company currently has 145 branches across the globe, which makes it a popular franchise option.
If you’re considering investing in a Hertz franchise, here are some of the key factors you should consider:
1. Your Budget
Above anything else, you should first consider your budget. The total initial investment needed for a Hertz franchise runs from around $150,000 to $500,000, depending on the vehicles you offer for rent and the size of your business. To come up with this investment, you might have enough savings on hand, or perhaps you already have a loan agreement from a private lender or a bank.
Whatever your source of funds, it’s crucial for you to assess your budget and determine if you can afford to make the investment. Even if you’re going to take out a loan, remember that you have to pay fixed monthly payments and interest on the loan. Be sure to factor this into your budget. Evaluate your finances and decide if it’s really financially feasible to invest now or if you have to wait a little bit longer.
If you need a little assistance with determining your financial position, you can study cost analysis at franchiseknowhow.com.
2. Your Location
Not all places need a car rental business. For example, some local areas in Southeast Asia have their own more popular and cheaper modes of transportation such as motorcycle rentals in Vietnam, tuk-tuks in Thailand, and tricycles in the Philippines. So depending on where you are in the world, your location might not be ready for a car rental business yet.
The most apparent telltale sign that a Hertz franchise is going to thrive in your area is if there are already taxis available as a standard mode of public transportation and if numerous private cars are used. Another sign is if your area connects with nearby tourist spots that visitors need to reach through car rentals.
3. Your Legal Papers Required
Due to the nature of a Hertz franchise, the business might require more legal documents than others. Educate yourself about these documents, so you can carefully think through if you’re still willing to go through the franchising process. Remember that a vehicle rental business has public safety as a primary consideration. As such, you have to demonstrate the highest duty of care to transport your customers to and from their destinations.
In addition, learn about the process of renting vehicles, so you don’t fall prey to scammers who might pretend to be customers and steal your cars.
4. Your Possible Workforce
In comparison with any other franchise business, the skills required of your workforce are higher when you own a car rental franchise. If you’re picking up and dropping off renters, you’ll need to hire drivers. Therefore, you should carefully screen and test your drivers. You have to be very careful with this step so you avoid any liabilities due to accidents caused by your drivers.
Here are some considerations you should review before employing your drivers:
- Past accident history (if any)
- Medical history
- Any history related to drugs, alcohol, and other addictions
5. Your Interest in the Car Industry
Whenever you decide on opening up a franchise business, you should always choose an industry that you know about or that interests you. Hertz Rentals is a great choice; however, you have to make sure that you have an interest in this industry. Remember that the initial contract lockup is a term of five years, which is quite a long time. A lot can change in a year.
In relation with your interests, be sure to factor in possible changes in your life for the next five years. Are you looking to move to another state? If so, then maybe now is not the right time for you to open up a franchise business. You need the dedication to put your heart into your Hertz franchise for the next five years.
If you’re an aspiring entrepreneur, going the franchise route might be the easiest way to start a business, especially if you’re a newbie. Through franchising, you don’t have to start your business from scratch all by yourself. However, as is the case with all businesses, you do have to put a lot of thought and care into your decision-making process if you’reconsidering franchising a Hertz Rental branch. This list of considerations can help you make a more prudent decision to avoid any pitfalls as you open your Hertz franchise.