U Save Car Truck Rental
U-Save Car & Truck Rental offers vehicle rentals to domestic and international customers. Known for its range of rental options, the franchise operates in the competitive car rental industry.
U Save Car Truck Rental franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation ranges from $167,900 to $1,547,250. This includes a payment ranging from $13,200 to $830,000 to the franchisor [p.1].
What is the initial franchise fee?
The Initial Franchise Fee ranges from $10,000 to $800,000 and varies based on factors such as trade area, population demographics, and commercial account opportunities [p.10]. This fee is fully earned upon signing the Franchise Agreement and is not refundable under any circumstances [p.48].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Revenue [p.48], and Franchisee must spend at least $5,000 annually on Local Advertising, with up to half that amount potentially allocated to an advertising cooperative as specified by the Franchisor [p.63].
How long is the initial franchise agreement, and can I renew it?
The term of the franchise agreement is typically ten years [p.139]. You may be able to renew the agreement on a month-to-month basis if certain conditions are met, such as the franchisor not offering new franchises or revising their form of franchise agreement [p.48] (5.3).
Can I sell or transfer my franchise, and what does that require?
Yes, you can transfer your franchise, but it comes with certain conditions and fees as outlined in the FDD. For a typical transfer, you must pay a fee equal to 75% of the current initial franchise fee [p.71]. However, if transferring to an existing franchisee in good standing, the fee is reduced to 50% of the current initial franchise fee. Transfers among existing principals or adding a business entity/new shareholder/member without changing management control incur a flat fee of $1,500. Additionally, transfers to a spouse, parent, or child due to death or permanent disability require a transfer fee of $3,500 [p.71].
On what grounds can the franchisor terminate the agreement?
According to [p.205], the franchisor may terminate the agreement on any grounds available by law. However, [p.210] notes that under Virginia law, terminating a franchise without reasonable cause is unlawful. Therefore, any termination must have a valid legal basis and comply with Virginia's Retail Franchising Act.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.27]. While there is limited protection against competition from other U-Save outlets using the same marks within your agreed-upon territory [p.26], you may face competition from other channels of distribution or competitive brands controlled by the franchisor [p.27].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training, which includes a course conducted at their headquarters, a franchised outlet, or virtually. This initial training must be completed to the franchisor's satisfaction before opening the Franchised Business [p.51]. Additionally, upon reasonable request or as deemed appropriate by the franchisor, the franchisor may provide on-site remedial training and assistance for a fee [p.51]. Ongoing support includes marketing and advertising support, and the operation of reservation systems [p.139, p.153, p.168].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide financial performance information if there is a reasonable basis for it and if certain conditions are met, such as providing actual records of an existing outlet or supplementing the information in Item 19. However, the franchisor does not make any representations about future financial performance or past performance of company-owned or franchised outlets, nor do they authorize their employees to make such representations. [p.35]
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all products and services that are part of the System, and any additional services and products approved by the franchisor in the future [p.30]. You must purchase or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. For supplies, you must purchase all equipment, supplies, and services from the franchisor's designated suppliers or in accordance with their specifications [p.18]. The franchisor maintains lists of approved items and updated supplier lists that are provided to all franchisees [p.18].