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