Start a NextCar Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $340K - $790K

Units as of 2020: 20 11.1% over 3 years

Founded in 2003, NextCar is a rental car company located mainly in the mid-Atlantic United States. In 2015, NextCar started franchising under the NP franchise group. Since then, NextCar has opened several franchises in the United States.

At NextCar, clients typically get a competitive deal for a rental car, whether it be for short or long-term rental. NextCar promises quality each time it rents out its cars to its customers. With this franchise, you may be part of a business that caters to your success as a franchisee.

Why You May Want to Start a NextCar Franchise

If you’re a petrol-head and love to spend your time around cars, then opening a NextCar franchise may be right up your alley. A NextCar franchise may be tailored for those passionate about business and providing quality service. A franchisee should be ready to listen to their customers and provide the best service in an effort to make them return clients.

NextCar has received recognition for its contribution to creating a greener planet, potentially making it an environmentally friendly company.

What Might Make a NextCar Franchise a Good Choice?

As a NextCar franchisee, your main responsibility will be to carry on the company's spirit. This means that your service delivery should be top-notch and your fleet of cars unmatched. Additionally, a NextCar franchisee should exude professionalism. Additionally, conducting rigorous market research could help your NextCar franchise remain competitive.

To be part of the NextCar team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.

A term of agreement with NextCar may last for an indefinite period of time. This may make it so franchisees do not have to worry about paying for renewal fees.

NextCar may offer in-house help covering the cost of inventory to franchisees who meet their qualifications. The company may also offer a discount off the franchise fee to honorably discharged veterans.

How To Open a NextCar Franchise

Opening a NextCar franchise could offer a more predictable outcome than investing in a completely new brand that may struggle to thrive in an already crowded and competitive industry.

As part of your due diligence, you should speak to current NextCar franchisees and ask the franchising team questions about the opportunity.

If awarded a franchise, franchisees may receive a great deal of support from the NextCar franchise brand throughout the franchising process. In addition to pre-opening training, franchisees could receive support through brand awareness, marketing, research, and construction. Franchisees may also receive hands-on training and continued support after their franchise location has opened.

It may be a good idea to speak with an attorney or financial advisor to ensure that you have the necessary financial resources to own and operate a NextCar franchise.

Company Overview

About NextCar

Industry	Automotive
Related Categories	Miscellaneous Automotive Products & Services, Auto Rentals & Sales
Founded	2003
Parent Company	NP Auto Group
Leadership	Michael DeLorenzo, President
Corporate Address	13900 Laurel Lakes Ave., #100 Laurel, MD 20707
Social	Facebook, Twitter

Business Overview

Franchising Since	2015 (9 years)
# of employees at HQ	25
Where seeking	This company is offering new franchises in the following US states: This company is offering new franchises in the following international regions:
# of Units	20 (as of 2020)

Information for Franchisees

Here's what you need to know if you're interested in opening a NextCar franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$20,000 - $100,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$339,992 - $790,226
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$50,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	$2,000 off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	$34/car/mo.
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	$8/car/mo.
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	Indefinite
Is franchise term renewable?	No

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing	NextCar offers in-house financing to cover the following: inventory

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	8 hours
Classroom Training	32 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	3
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes