The Franchisor in this
Franchise Disclosure Document is Affiliated Car Rental, L.C., a limited
liability corporation formed on March 10, 1999 in the State of Florida, with offices located at 99 North Atlantic Avenue, Cocoa Beach, Florida, 32931. The Williams and Stazzone Agency is an affiliate of the franchisor. The company''s
principal address is 99 North Atlantic Avenue, Cocoa Beach, Florida, 32931. The Williams and Stazzone Agency is Affiliated''s insurance broker, who negotiates and
secures car rental insurance policies for Affiliated''s franchisees.
On March 29, 1999, Affiliated Car Rental, L.C.,
purchased the trade names, trademarks, physical and ongoing contractual assets
of two existing, independent but affiliated vehicle rental franchisors, both
incorporated in the State of New Jersey and both having a principal address of
105 Highway 36, Eatontown, New Jersey 07724. At the time of purchase, the
identities of the stockholders, officers and managers of both affiliated
franchisors were identical.
One of the businesses from which assets were purchased
was Sensible Car Rental, Inc., a firm offering vehicle rental franchises
primarily to used car dealerships, repair shops and other automotive
aftermarket repair businesses. Sensible Car Rental, Inc. was incorporated in
the State of New Jersey on July 17, 1986, conducted business only as Sensible
Car Rental, Inc. from that date and had no predecessor. However, Sensible is
the predecessor of Affiliated Car Rental, L.C. The company did not offer franchises
in any other line of business. As successor owner to the assets, Affiliated Car
Rental, L.C, continues to operate as a franchisor under the Sensible Car Rental
name. In addition, it is pleased to continue utilizing the skills of the
previous Management, whom collectively have over seventy-five years experience
in the operation of motor vehicle sales, rental and leasing.
The other business from which
assets were purchased was Affordable Used Car Rental System, Inc., which
offered vehicle rental franchises primarily to new car dealers. Affordable Used
Car Rental System, Inc. was incorporated in the State of New Jersey on February
24, 1981 and continuously did business only as Affordable Used Car Rental from
that date and has no predecessors. However, Affordable Used Car Rental System,
Inc. is the predecessor of Affiliated Car Rental, L.C. The company did not
offer franchises in any other line of business.
On November 27, 2002,
Affiliated Car Rental, L.C. acquired Replace-A-Car (RAC), a Virginia based
corporation. Replace-A-Car is a membership organization and. not a franchise
system. RAC offers insurance and other services to its membership of eighty
eight (88) independently owned auto rental businesses. Affiliated intends to
expand this membership organization under the trademarked marketing name,
"A Substitute Rent-A-Car". A Substitute Rent-A-Car is not a franchise
and does not compete with Affiliated''s franchise programs. A Substitute
Rent-A-Car has its primary business located at 105 Highway 36, Eatontown, New Jersey 07724. Any A Substitute Rent-A-Car may convert to an Affordable Car
Rental or Sensible Car Rental franchise under the same terms and conditions of
any new Affiliated Franchisee.
Throughout the remainder of this franchise disclosure
document, "Affiliated" means the franchisor, Affiliated Car Rental,
L.C, doing business under the purchased trade names of Sensible Car Rental and
Affordable Car Rental offering a Sensible Car Rental Franchise or an Affordable
Car Rental Franchise, respectively, depending on the category of your existing
business. The terms and conditions of the franchise agreement and items of
disclosure for these franchises are identical. The only difference between
these franchises is that a Sensible Car Rental Franchise is
5
The Franchisor in this Franchise Disclosure Document
is Affiliated Car Rental, L.C., a limited liability corporation formed on March
10, 1999 in the State of Florida, with offices located at 99 North Atlantic
Avenue, Cocoa Beach, Florida, 32931. The Williams and Stazzone Agency is an
affiliate of the franchisor. The company''s principal address is 99 North Atlantic Avenue, Cocoa Beach, Florida, 32931. The Williams and Stazzone Agency is
Affiliated''s insurance broker, who negotiates and secures car rental insurance
policies for Affiliated''s franchisees.
On March 29, 1999, Affiliated
Car Rental, L.C., purchased the trade names, trademarks, physical and ongoing
contractual assets of two existing, independent but affiliated vehicle rental
franchisors, both incorporated in the State of New Jersey and both having a
principal address of 105 Highway 36, Eatontown, New Jersey 07724. At the time of
purchase, the identities of the stockholders, officers and managers of both
affiliated franchisors were identical.
One of the businesses from which assets were purchased
was Sensible Car Rental, Inc., a firm offering vehicle rental franchises
primarily to used car dealerships, repair shops and other automotive
aftermarket repair businesses. Sensible Car Rental, Inc. was incorporated in
the State of New Jersey on July 17, 1986, conducted business only as Sensible
Car Rental, Inc. from that date and had no predecessor. However, Sensible is
the predecessor of Affiliated Car Rental, LC. The company did not offer
franchises in any other line of business. As successor owner to the assets,
Affiliated Car Rental, L.C., continues to operate as a franchisor under the
Sensible Car Rental name. In addition, it is pleased to continue utilizing the
skills of the previous Management, whom collectively have over seventy-five
years experience in the operation of motor vehicle sales, rental and leasing.
The other business from which
assets were purchased was Affordable Used Car Rental System, Inc., which
offered vehicle rental franchises primarily to new car dealers. Affordable Used
Car Rental System, Inc. was incorporated in the State of New Jersey on February
24, 1981 and continuously did business only as Affordable Used Car Rental from
that date and has no predecessors. However, Affordable Used Car Rental System,
Inc. is the predecessor of Affiliated Car Rental, L.C. The company did not
offer franchises in any other line of business.
On November 27, 2002, Affiliated Car Rental, L.C.
acquired Replace-A-Car (RAC), a Virginia based corporation. Replace-A-Car is a
membership organization and not a franchise system. RAC offers insurance and
other services to its membership of eighty eight (88) independently owned auto
rental businesses. Affiliated intends to expand this membership organization
under the trademarked marketing name, "A Substitute Rent-A-Car". A
Substitute Rent-A-Car is not a franchise and does not compete with Affiliated''s
franchise programs. A Substitute Rent-A-Car has its primary business located at
105 Highway 36, Eatontown, New Jersey 07724. Any A Substitute Rent-A-Car may
convert to an Affordable Car Rental or Sensible Car Rental franchise under the
same terms and conditions of any new Affiliated Franchisee.
Throughout the remainder of this franchise disclosure
document, "Affiliated" means the franchisor, Affiliated Car Rental,
L.C, doing business under the purchased trade names of Sensible Car Rental and
Affordable Car Rental offering a Sensible Car Rental Franchise or an Affordable
Car Rental Franchise, respectively, depending on the category of your existing
business. The terms and conditions of the franchise agreement and items of
disclosure for these franchises are identical. The only difference between
these franchises is that a Sensible Car Rental Franchise is
5
primarily sold to used car
dealerships, repair centers and other automotive aftermarket repair businesses
and an Affordable Car Rental Franchise is primarily sold to new car
dealerships. All franchise activities are conducted from Affiliated''s offices
located at 105 Highway 36, Eatontown, New Jersey 07724. Affiliated does not
operate any company-owned outlets.
"You" means the
franchisee or the person(s), corporation, partnership or other entity, which
purchases a franchise from Affiliated Car Rental, L.C.
Affiliated franchises a vehicle rental business,
renting passenger automobiles not exceeding eight passengers, vans and light
duty trucks not exceeding 18,000 GVW (Gross Vehicle Weight) without drivers, to
the general public. Affiliated''s franchisees operate their vehicle rental
franchise with their automotive dealership or other automotive related repair
business, using the same facilities, furniture and fixtures, equipment and
tools. Since Affiliated franchisees primarily offer for rent used rather than
new vehicles, the rental prices tend to be lower than the prices charged by
rental agencies offering new vehicles. Your competitors include new and used
car rental agencies. The services of the franchise will be sold to individuals and
businesses that are in need of renting a vehicle. Some of the business will
originate from your already existing automotive dealership or repair facility
and some of the business will originate from outside sources; such as, yellow
page advertising, direct mail and referrals from satisfied customers.
There are no specific
regulations regarding the car rental industry with the exception that some
states may require a specific license for car rental and some states may have
enacted legislation to limit the sale of Collision Damage Waiver (CDW or PDW),
such as the States of California, Illinois and New York. You will be advised
during training as to any requirements specific to your situation.
Affiliated grants to individuals, partnerships or
corporations who are already in the automotive after market business and who
meet Affiliated''s qualifications, a Sensible Car Rental Franchise or an
Affordable Car Rental Franchise to own and operate from an approved single
location within an exclusive territory, offering only the services authorized
by Affiliated and the right to use Affiliated''s trademarks, formats, designs,
standards and operating procedures.
