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Becoming a licensee might seem a daunting task at the outset ... but the procedure is seamless at Avis Budget Group. It has to be. We manage nearly 200 individual licensees in over 160 countries, operating in excess of 2,200 locations. For this to work we run a tight ship, with processes finessed over a 70-year period.
Our licensee team will guide you through the set-up process step-by-step when the time comes. Set-up covers four main activities:
How long does it take? That depends on a few factors – the size of the territory in question, availability of fleet, pre-existing infrastructure and IT systems. Typically, it takes between three and 12 months to launch a new licensee market. That’s from initial expression of interest to Go Live.
First, we offer commercial terms. These generally comprise a one-off territory fee that for the duration of the agreement (including any subsequent contract renewals) provides you exclusive rights to the agreed brand in the territory under discussion. In addition we will agree revenue-based royalty fees payable monthly on the preceding month’s revenue (fees vary by business segment; e.g. rental, leasing, chauffeur drive etc., and vehicle type; e.g. passenger cars, buses, commercial vehicles etc.). A non-disclosure agreement (NDA) will accompany these discussions. Other fees such as reservation fees, travel agency commissions, factoring fees and so on will also be shared with you.
In parallel to the commercial discussions we will work with you to confirm that your financial worth and liquidty is sufficient to operate a successful vehicle rental business. Assuming this to be the case and following agreement on commercial terms, a contract will be drawn up that will include the minimum expected size of your network, levels of fleet and royalty payments per year of the contract, as well as the date on which operations are due to commence.
We have over 70 years experience in renting and managing vehicle fleets, and with this comes many years of investment and development in financial and operational systems. We will work with you to evaluate your needs and identify which of our systems would benefit your new licensed operation. This includes integration with and access to our global reservation system.
As we near the agreed date of launch for your chosen brand, our team will work with you and your staff to ensure that everything is ready. As part of this process, we will train you on how to use the various systems, introduce you to our brand and uniform standards, as well as guide you through the process of setting up your location(s) such that customers will receive the same high standards that they enjoy the world over. Our PR and marketing department will support you with any required press releases and advise you on promotional and advertising activity.