08 Sep, 2017

Car Franchise

Whether you are operating your own leasing company or simply getting into rental business, you always have to be presented with opportunities to buy a franchise or agency. While facing it, some of the offers definitely look to good to be missed out and the reality is somewhat different. You need to keep in mind that large rental companies only franchise areas for a single reason. It is by making out money. Thus, if you are being offered with a rental car franchise within a town, it’s certainly for the reason that the rental company could not anymore make up money and operating it as a corporate site. You won’t be seeing franchises being sold at major airports or any gateway spots around. Companies that are making money are simply diversifying into another business line or simply cutting down the corners when it comes to the operating procedures of the rental car franchise. So, what does a rental car franchise needs to offer? Well, it’s only that, you take on a rental car franchise for an established system, added number of customers, fleet supply, power purchase and more. In reality, you barely need to promote the brand of the franchising and makes you lose down your own brand throughout the process. Deliver the vehicles on behalf of the franchisor on his terms, yet it should always be at your expense. Use adequate number of staff to ensure that you could definitely honor the commitments being made by the franchisor, regardless of the terms if they are profitable or not. Simply pay the franchisor a percentage or a royalty of revenue on the entire business, without concerns on the profitability. Generally, you also have to get high percentage of the vehicle fleet by the franchisor. Undoubtedly, the franchisor will take a profit from supplying down the vehicles, yet you will still be responsible for paying out for such vehicles, once the franchisor lose an account and the cars are then all parked at your premises without any customer around. As a franchisee, you must know that franchisors do not actually tend to treat you as partners. This is for the reason that they will be treating you as their customers. This is all because of the revenue stream that must be exploited at every opportunity as the captive market, which is committed for the period of the franchise itself. Keeping such things in mind prior to starting with rental car franchise would be a better idea.