Saturday, 29 July 2017

Rent-a-Wreck is not a wreck

"Rent-A-Wreck Files for Bankruptcy, Cites Litigation Costs"... when we first saw this story on July 27th, we gasped, thinking the headline meant the demise of the overall Rent-a-Wreck brand.

It's the kind of challenge many franchisors have, when operators of master franchise agreements (such as for a province, state, country or region) use the brand's name in their legal name.

Suffice it to say that the demise of "Rent-A-Wreck of America Inc." does not equate to the end of the Rent-a-Wreck brand or its parent company, International Franchise Systems (IFS), which licences franchise locations in the USA, Scandinavia, and Saint Maarten. .

Rent-A-Wreck of America Inc., which filed for bankruptcy in Delaware, had been headed to trouble for awhile. Between lawsuits involving the owner, stalled growth during the economic downturn, other litigation and more, it's a bit of a sad story. You can read the news story here, if you want the sordid details.

We just hope it doesn't hurt the rest of the brand.

In the broader context of the sharing economy (the emergence of carsharing services such as Uber and Lyft), micro-rentals (such as Zipcar), the plethora of online car rental booking engines (like ours) and an increasing demand for green technology, Rent-a-Wreck deserves kudos for staying relevant and upping their game.

Meanwhile, in other Rent-a-Wreck news:

Michael DeLorenzo Wins Auto Rental News Impact Award - Auto Rental News
Michael DeLorenzo received the inaugural Auto Rental News Impact Award for outstanding service to the auto rental industry. DeLorenzo serves as the executive vice president of International Franchise Systems (IFS), which owns the NextCar, Priceless, and Rent-A-Wreck brands. He is also a member of the American Car Rental Association’s (ACRA) Board of Directors... [read more].

So You Think You Want to Become a Franchisee? - Auto Rental News
“I washed cars for Hertz in high school,” says Matthew Allen, a Rent-A-Wreck franchisee in Richmond, Va. “From that experience I had always felt I wanted to have a rental car operation.” Allen started (his Rent-a-Wreck franchise) with seven cars in 2012 and is up to 86 today. Regarding the decision to franchise or operate his own car rental business, “I never thought about going independent,” he says. “I felt I needed the support and expertise of people who had done it before."... [read more].

How One Rent-A-Wreck Franchisee Became a CNBC Star - Auto Rental News
Ernesto “Sonny” Mongillo, Jr. wasn’t even sure what the fuss was about. After filling out a questionnaire sent from International Franchise Systems, the parent company of his Rent-A-Wreck and Priceless car rental business in Southern Conn., he took a follow-up phone call with more questions... When Mongillo finally saw the link online, he realized he had been named one of CNBC’s Star Franchisees for 2016. “Yeah, I was surprised and excited,” Mongillo said. “It was a little overwhelming...” [read more].

FYI, for our Canadian readers:
A separate Canadian Rent-a-Wreck company is not affiliated with the US based firm. The Calgary-based firm offers car and truck rentals in all 10 Canadian provinces and the Yukon.

More from IHateTaxis
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Need to rent a car? Check out IHateTaxis Car Rentals - we're global and we're competitive... give us a try!

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