Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
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  • And Hundreds More...

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FDD Talk: Our Latest Views on the 2014 Financial Performance of Rent-A-Wreck Businesses (Used Car Rental and Leasing) (2014 FDD)

by Franchise Chatter on March 12, 2015

in Car Rental Franchise, Franchise Earnings



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Rent-A-Wreck Photo from citysearch.com

Highlights of Rent-A-Wreck’s Item 19 Financial Performance Representations (2014 FDD) – Part 1 of 3

  • The franchise offered is for the operation of a vehicle renting, leasing, car sharing, rent-to-purchase, rent-to-own, lease-to-own, and used vehicle sales business.
  • Table 1A contains historic financial performance representations about the Rent-A-Wreck system’s existing franchised businesses and the company-operated Rent-A-Wreck businesses in Bedford Park (Chicago), Illinois; Baltimore, Maryland; and Glen Burnie, Maryland (“Corporate Stores”).
  • The information in Table 1A relates to the historic performance of the entire Rent-A-Wreck system for the 12-month period ended July 31, 2014 (the “2014 Sample Period”).
  • As of July 31, 2014, there were 93 Rent-A-Wreck Franchised Businesses that had been open and operating during the entire 2014 Sample Period.
  • Rent-A-Wreck requested information for each of the categories presented below from all open and operating Rent-A-Wreck Franchised Businesses during the 2014 Sample Period.
  • The revenue data presented below are derived from the actual historical performance of all Rent-A-Wreck franchisees who, as of the date of the 2014 disclosure document, had reported complete revenue information for the entire 2014 Sample Period.
  • Table 1A also presents information on the actual historical performance of all 3 Corporate Stores during the 2014 Sample Period.
  • Of the 93 Rent-A-Wreck Franchised Businesses that had been open and operating during the entire 2014 Sample Period, 55 (approximately 59%) provided the franchisor complete reporting for each month of the 2014 Sample Period (the “2014 Sample Franchised Businesses” or “2014 Sample”).
  • Of the 93 open and operating Rent-A-Wreck Franchised Businesses, 38 (approximately 41%) did not provide complete reporting for each month of the 2014 Sample Period and were not included in the 2014 Sample.
  • The number of franchised locations that achieved or surpassed the average figures presented for each subgroup in Sample Period 2014 is shown in Table 1B.

Table 1A – Financial Performance Summary for 12 Months Ending 7/31/2014

Corporate Stores



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