• Investment Required
• Investment Level: $ 125 K
• Training and Support: Yes

As a business segment, the car rental market is significant, with total proceeds in excess of 41 billion dollars. It is, however, quite competitive and has some unique economic operating parameters. The most important of these is acquisition and disposition of vehicles on a regular basis; as a result, most auto rental firms are looking for entrepreneurs with fairly deep pockets (initial investments, including franchise fees, can be as high as $100,000), and some experience in selling used cars, either to consumers or to dealerships. Affiliated is no exception.

Affiliated Car Rentals has nearly 300 locations nationwide, and a dedicated staff of 7 people in their Matawan New Jersey Headquarters dedicated to their franchising and franchise support office. A typical franchise fee costs $6,000 to $10,800 depending on the service sector offered. Your initial investments other than the franchise fee will be in facilities and acquiring leased vehicles to rent, plus insurance policies.

Affiliated's growth curve is impressive, with an expansion from 94 outlets in 2000, to 290 at the end of 2007. They are still seeking franchise locations in all 50 states, and offer exclusive operating territories to work in. They provide seminars on all aspects of the business, and continuing support options to make the business grow.

While 99% of all Affiliated locations are owner-operated, the company does permit absentee owners. A typical location needs 2-4 employees to be viable, and the usual business expansion plan is to acquire adjacent territories to work within. The firm does provide cooperate advertising and ad slicks, and for training and support, provides seminars, purchasing cooperatives, and referrals on maintenance issues. They also provide a newsletter, and regular regional meetings to discuss issues relating to the industry as a whole and to franchise holders in particular. The company also provides a toll free toll line that redirects callers to the franchise in their local area, internet booking and support options, security and safety procedures that reduce liabilities to the company, and field operations and evaluation support.

Because of the extensive equipment requirement needed, there are some interesting tax advantages to owning a rental car business. Due to changes in the tax code in 2003, up to $100,000 in new equipment purchased each year can be deducted from expenses, and when you're buying cars, that's pretty substantial. In addition to this, there's a 50% bonus write-off (increased from 30%) as well as the usual deductions for office space, office furniture and equipment, continuing education, health care, travel and business related entertainment expenses.

Business Franchise World is not actively submitting franchise applications to the Affiliated Car Rentals franchise opportunity at this time. Please browse our other top franchises, which are currently accepting new franchising opportunity applications.