Also, as a smaller business in a risky industry, a franchisee is more likely to look at decisions from a short-term financial standpoint. The parent corporation has less oversight in how the franchise is run. For one, you’re renting from an independent company. Your customer service options may also be more limited in a few areas. Typically, a franchisee owns a single branch, several branches within a city or, at most, branches in a regional area. You can usually only return that vehicle back to an office owned by that franchisee. If you rent from a franchise, you may not be able to rent one-way. Rental Car Corporation, Licensee or Agency?įor the customer, the distinction between corporate, franchisee, and agency primarilyaffects two situations: one-way rentals and customer service. Instead, an agency relies on a pooled fleet owned by the parent corporation and receives a percentage of the revenue earned from each transaction. But the agency doesn’t own its rental fleet. An agency owner/operator is responsible for staking out a location and obtaining the real property, hiring and training staff, and bringing the location into brand image and compliance standards. An agency is often a hybrid of a corporate store and a franchise.The franchisee also holds the leases or titles to its own cars. The franchisee owns the property, and runs its own fleet. A franchisee or licensee is usually its own business that hires its own staff. There are restrictions as well as ongoing payment of fees to the brand owner. A franchisee or licensee is an independent company that operates under the brand name.The national corporation owns that office’s assets, including the fleet. Ultimately, his boss is the company president. An employee working for a corporate store answers to a series of local, regional, and national managers. A corporate branch is managed by the branded company that owns the location.Local rental branches of the nine major brands usually fall into one of the following categories: The key word there is “should.” The Different Kinds of Car Rental Company Models In the same vein, renting from a local car rental franchise should provide you with the same consistent experience nationwide. If there are standards, you have a consistent experience around the world, regardless of who actually owns the restaurant. McDonald’s tells its franchises exactly how to cook burgers and chicken nuggets. After all, many rental agencies operate much like fast food chains, contracting out their local operations.Īsk AutoSlash for a Quote on a Cheap Car RentalĪs with fast food, a locally-owned operation isn’t necessarily a bad thing. You might be picking up your vehicle from a car rental franchise. Think you’re renting from a giant corporation? Not necessarily.
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