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A highly-regarded, low-cost car rental franchise boasting unparalleled stability and profitability in the industry!
In December 2021, we surpassed 265 franchise locations nationwide!
This is currently the fastest-growing franchise.
The appeal lies in the stable, recurring revenue generated through long-term rentals on a monthly basis, similar to rental income. Furthermore, with the vehicle lease model, there's no need to purchase a vehicle, allowing for low-investment startup and enabling a low-cost, high-return business with profit margins of 30-40%.
Estimated Startup Cost:¥10,000,000 or More
Industry:Various Services
Guts Rent-a-Car is an ultra-cheap rental car service specializing in long-term rentals of mainly used kei cars (mini cars).
We achieve profitability within 3-6 months of opening. Within one year of opening, we can achieve a fleet of 100 vehicles and sales of 4 million yen!
We use the highly recognizable Guts Ishimatsu as our image character, ensuring a high level of trust! Our services differentiate us in the industry with low prices, kei cars, and long-term rentals. Our rental prices are among the lowest in the industry, resulting in a 90% repeat customer rate and a high vehicle utilization rate of 80%. Furthermore, we have many long-term customers, ensuring stable revenue.
The secret to our low prices lies in our 25+ years of experience in used car sales and our know-how in cost reduction. By specializing in long-term rentals and streamlining operations, we reduce labor and opening costs, achieving high profitability. Moreover, in terms of customer acquisition, which is crucial, the Guts Rent-a-Car reservation website receives an astonishing 300,000 visits per month! This is a safe and highly profitable business.
Since the Lehman Shock, both individuals and corporations have shifted towards not owning cars and instead "renting a car when needed." This shift in consumer attitudes from "ownership to usage" has led to increased demand for affordable car rentals, and the overall market continues to grow.
To meet this changing need, Guts Rent-a-Car primarily offers affordable, high-quality kei cars (mini-vehicles). Furthermore, they differentiate themselves from competitors by offering long-term rentals on a monthly basis for those who need a car for a specific period.
Since opening, there have been virtually no competitors. They have steadily expanded their market share in the long-term car rental market and virtually monopolize the medium- to long-term market in Japan!
Guts Rent-a-Car is perfect even for those with no prior experience in the automotive industry! Many of our owners come from other fields. Furthermore, the operations are simple and not physically demanding, making it an excellent business option for those considering retirement.
You'll gain fundamental knowledge and practical experience through a 13-day pre-opening training program at headquarters. Headquarters provides thorough support for specialized procedures such as selecting a location, applying for a rental car business license, procuring vehicles, and obtaining "wa" license plates.
Even after opening, you can rest assured knowing that headquarters supervisors will monitor your profitability and provide support for any issues that may arise. The support you receive from experienced headquarters staff, especially regarding any problems, is a unique advantage of franchising!
Franchise fee: 3.5 million yen (3.85 million yen including tax)
Initial system setup fee: 1 million yen (1.1 million yen including tax)
Headquarters training fee: 500,000 yen (550,000 yen including tax)
Property acquisition fee: Approximately 1.5 million yen (estimate: varies depending on the property)
Interior/exterior/signage fee: Approximately 1 million yen (estimate: varies depending on the property)
Vehicle purchase fee: Approximately 6 million yen (purchase of 15 vehicles)
Land transport fee: Approximately 300,000 yen (estimate: 15 vehicles, Nagoya to Tokyo)
Other start-up expenses: 3.4 million yen (estimate)
Breakdown of other start-up expenses: Rental car business application, ETC/navigation purchase fee, operating tool fee, initial sales promotion fee, fixtures/office furniture/PC etc.
Working capital: Approximately 5 million yen is required.
Sales: 4.1 million yen
Expenses: 2.4 million yen
Personnel Costs: 500,000 yen
Rent: 280,000 yen
Utilities: 20,000 yen
Royalties: 100,000 yen
System Management Fees: 60,000 yen
Other Expenses: 1.4 million yen
Other Expense Breakdown: Sales promotion expenses, optional insurance, vehicle maintenance costs such as inspections and repairs, communication costs, etc.
■ Before Opening
• Property acquisition support
• 13-day training
• Business application support
• Vehicle acquisition support
• Support for vehicle procurement and ownership transfer procedures
■ After Opening
• Customer acquisition support through web strategy
• Revenue monitoring by a supervisor
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