U-SAVE Car & Truck Rental Franchise Disclosure Document for 2017 doesn’t paint a pretty picture of the struggling Ridgeland, Mississippi-based franchisor. Franchise and employee lawsuits, a 25% franchisee turnover rate and a working capital deficit of $12,374,676 are a few of the red flags that stand out.
(UnhappyFranchisee.Com) U-Save Auto Rental has released its updated franchise disclosure document (fdd) for 2017.
You can read all 182 elecrifying pages here:
2017 U-Save Car & Truck Rental Franchise Disclosure Document (FDD)
We’ve included some highlights (lowlights?) below.
Item 2 of the U-Save Auto Rental FDD discloses the following executives as the U-Save management team:
U-SAVE Car & Truck Rental Franchise Litigation
* Trek Auto Sales, Inc. franchisee lawsuit against U-Save is currently in arbitration
** Former U-Save executive Bob Barton sued U-Save after his employment was terminated for “cause.” On May 6, 2015 “the arbitrator issued an award, in Barton’s favor, in the amount of $596,645.44.”
U-SAVE Car & Truck Rental Franchisee Turnover: 25%
U-Save terminated 31 franchises during that time.
U-Save had a 25% turnover of franchisees during that period.
The U-Save domestic franchise count declined from 104 operating units at the start of 2014 to just 92 units at the end of 2016, a 16% decline.
The audited financial statements for franchisor Franchise Services of North America (FSNA) include this statement under “Plan of Operations”:
The Company’s future operations are dependent upon the Company’s ability to maintain profitable operations and FSNA’s ability to obtain additional capital to meet its cash flow needs. In addition, FSNA has a working capital deficit of $12,374,676 as of September 30, 2016 primarily associated with liabilities incurred in connection with its acquisition and reconsolidation of Simply Wheelz. Management believes the Company has sufficient capital to meets its obligations in the ordinary course of business through fiscal 2017, but may require additional capital in subsequent periods. There can be no assurance that FSNA or the Company will raise additional capital on favorable terms or at all.
Read the 2017 U-Save Car & Truck Rental Franchise Disclosure Document (FDD)
Related reading:
American Car Rental Association (ACRA) Board Member Bradley Kjar Wins Award
U-SAVE FRANCHISE, Brad Kjar Earn Pinocchio Award
MACQUARIE CAPITAL vs. FRANCHISE SERVICES OF NORTH AMERICA
TAGS: U-Save franchise complaints, U-Save, U-Save franchise, U-Save complaints, U-Save Car and Truck Rental, U-Save Car and Truck Rental franchise, car rental franchise opportunity, Tom McDonnell, Thomas McDonnell III, U-Save Holdings Inc., Franchise Services of North America Inc., FSNA, U-Save FDD, Franchise disclosure document, unhappy franchisee
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This franchise, in my opinion, has very little to offer. I have been told that the Usave franchisor shut down the reservation system on a West Coast licensee, over a dispute, that operates over 350 cars. Usave has shut off the flow of business to more than one licensee and in my opinion has violated the Franchise Practices Act. Buyer beware.