Although the investment to start a Rent A Wheel Franchise will vary depending on the cost of doing business in your market, the following are estimates.

Type Of Fee Low Estimated High Estimated Method of Payment When Due To Whom Payment is to be Made
Initial Fee 1 $50,000 $50,000 Lump Sum After Signing Franchise Rent A Wheel
Real Estate 2 $3,000 $8,000 As Arranged As Arranged Landlord
Leasehold Improvements 3 $2,000 $80,000 Progress Payments As Arranged Landlord or Contractors
Signs 4 $50 $200 Direct Withdrawal Weekly Rent A Wheel
Computer Equipment 5 $9,000 $13,000 As Arranged Before Opening Rent A Wheel and Vendors
Equipment and Fixtures 6 $20,000 $30,000 Financed or As Incurred As Arranged Rent A Wheel and Vendors
Vehicle 7 $1,500 $7,600 As Arranged As Arranged Vendor or Lessor
Insurance 8 $6,500 $11,000 Down Payment Before Opening Insurance Companies
Travel and Living Expenses While Training 9 $500 $3,800 As Arranged Before Opening Suppliers of Transportation, Food and Lodging
Opening Advertising 10 $3,000 $9,000 As Arranged Before Opening Vendors
Initial Inventory 11 $5,000 $80,00 As Arranged Before Opening Vendors
Legal and Accounting Fees $2,000 $5,000 As Arranged Before Opening Vendors
Additional Funds-3 to 12 Months 12 & 13 $56,000 $200,00 As Incurred As Incurred Employees, Vendors, Suppliers and Utilities
Totals $158,550 $497,600

Typical Working Capital

You will also need in cash and/or a line of credit, sufficient capital to cover installment floorplan payments on inventory re-orders (re-orders range from approximately $3,000 to $80,000 each month) and to cover all the general operating expenses of your Franchise until it reaches a break-even point. The level of growth the Franchise achieves, and whether you pay cash for or finance your inventory re-orders, will determine your break-even point and the amount of working capital you will need. The following are working capital estimates, assuming you finance inventory re-orders.

During the early stages of the business you may need additional funds for personal living expenses.

Revenue Split That's Advantageous to You

Rent A Wheel receives a continuing license fee of 6% of total revenues for the term of the Franchise Agreement. Total revenues are defined as the sum of all revenues generated in connection with the Franchise Business.

The exterior signs, which vary in cost from $10,000 to $18,000, are purchased by Rent A Wheel and leased to you over the first five years of your Franchise Agreement.

Contact Us

Please contact us using the brief form below and a franchise representative will contact you or call us at 818-786-7906 x 4105.