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EHI Terminating National/Alamo Franchise Agreements

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EHI Terminating National/Alamo Franchise Agreements

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Old Jan 16, 2019, 9:32 pm
  #1  
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EHI Terminating National/Alamo Franchise Agreements

I believe a few franchised National locations converted to corporate locations in the past year or so. A little bit of Internet sleuthing revealed the article below. Looks like EHI wants to terminate their US franchise agreements with National/Alamo licensees and convert them to corporate locations.

https://www.franchisetimes.com/news/...neys-Cry-Foul/

Is anyone aware of location(s) that have converted or what the status is currently with US franchised locations still out there still?
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Old Jan 17, 2019, 8:53 pm
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We believe the 3 companies mentioned in the above-referenced article were the last holdouts in the US. EHI settled with all 3 of them by September 2018 and all those franchised locations were switched to corporate ownership shortly thereafter.
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Old Jan 17, 2019, 8:57 pm
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Interesting. Do you have an article we can read about it? Enterprise in contrast takes the opposite strategy outside North America, offering franchises to well-regarded local rental companies.
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Old Jan 17, 2019, 10:15 pm
  #4  
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It's in the court filings on the case. You'd have to sign up for Pacer access to download the actual documents related to the case:

https://www.pacermonitor.com/public/...vice_Inc_et_al
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Old Jan 17, 2019, 10:28 pm
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Originally Posted by AutoSlash
We believe the 3 companies mentioned in the above-referenced article were the last holdouts in the US. EHI settled with all 3 of them by September 2018 and all those franchised locations were switched to corporate ownership shortly thereafter.
Do you know which locations were involved?
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Old Jan 17, 2019, 11:01 pm
  #6  
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These are the locations we know of (there could be others):

Alaska Sales & Service - Anchorage, AK
Midwest Car - Madison, WI Salt Lake City, UT Fort Wayne, IN
Corpat - Missoula, MT
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Old Jan 17, 2019, 11:28 pm
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Originally Posted by AutoSlash
These are the locations we know of (there could be others):

Alaska Sales & Service - Anchorage, AK
Midwest Car - Madison, WI Salt Lake City, UT Fort Wayne, IN; Columbus, OH
Corpat - Missoula, MT
There was also a single unit franchisee of Alamo/National at the Arcata, CA Airport. Historical Google and Yelp reviews will provide context for this one. It appears this location may still be open but it is marked closed on some social/map websites.
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Old Jan 18, 2019, 10:08 am
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Wasn't there a SC franchise that was also suing?

How did EHI settle? Are the former owners now agency operators, with a corporate pooled fleet, similar to Avis/Budget neighborhood stores?

And Alaska is now a corporate store? Any chance they might offer one-way specials like the FL/AZ seasonal shifts?
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Old Jan 18, 2019, 2:25 pm
  #9  
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Originally Posted by Auto Enthusiast
Wasn't there a SC franchise that was also suing?

How did EHI settle? Are the former owners now agency operators, with a corporate pooled fleet, similar to Avis/Budget neighborhood stores?

And Alaska is now a corporate store? Any chance they might offer one-way specials like the FL/AZ seasonal shifts?
The original lawsuit was filed in SC and I believe that Corpat was the local franchisee there but not sure of exact locations besides Greer, SC.

An interesting post is here and is related to your other questions. You can see a post from EHI recruiting for a return agent. It was posted on 8/11/18 (around the time that EHI acquired the franchisees operations). Note this requirement:

Must be currently working for Corpat, Inc. (National and/or Alamo franchisee).
The way it was basically "settled" is that EHI bought out the franchisees. As per the job post above, they probably did retain some portion of the existing employees (maybe all?), but the previous owners left with a check and they were no longer involved in the operations most likely.

As far as Alaska (Anchorage) goes, it is a corporate store now, and no, they won't be doing any sort of one-way specials. There are no rental companies that allow one-way rentals between Alaska and the lower-48 or vice-versa. While it's possible to make the drive, no rental company wants to send a tow truck 500 miles or more to pick up a disabled vehicle if it were to come to that. It's just not worth the potential headaches.
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Old Jan 18, 2019, 2:31 pm
  #10  
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There's also some further location info in the exhibits that are referenced in the filings on this page:

COMPLAINT National-Alamo Car Rental System, USA, LLC vs Alaska Sales & services, Inc. Charleston Division. ( Filing fee $ 400 receipt number 0420-7147393). (Attachments: # 1 Civil Cover Sheet, # 2 Summons, # 3 LR 26.01 Answers, # 4 Exhibit Anchorage License Agreement, # 5 Exhibit Bentonville License Agreement, # 6 Exhibit Calumet/Houghton License Agreement, # 7 Exhibit Marquette License Agreement, # 8 Exhibit Boise License Agreement, # 9 Exhibit Columbus License Agreement, # 10 Exhibit Salt Lake City License Agreement, # 11 Exhibit Roanoke License Agreement, # 12 Exhibit Grand Forks License Agreement, # 13 Exhibit Wichita License Agreement, # 14 Exhibit Billings License Agreement, # 15 Exhibit Bozeman License Agreement, # 16 Exhibit Great Falls License Agreement, # 17 Exhibit Helena License Agreement, # 18 Exhibit Kalispell License Agreement, # 19 Exhibit Missoula License Agreement, # 20 Exhibit Minot License Agreement, # 21 Exhibit Jackson License Agreement, # 22 Exhibit Idaho Falls License Agreement, # 23 Exhibit Rapid City License Agreement, # 24 Exhibit Renewal Agreement, # 25 Exhibit Consent to Transfer Agreement, as executed by NACRS, Midwest, and Corpat, # 26 Exhibit Notice of Termination-Alaska-Anchorage, # 27 Exhibit Notice of Termination-Jones-Bentonville, # 28 Exhibit Notice of Termination-Keweenaw-Calumet, # 29 Exhibit Notice of Termination-Keweenaw-Marquette, # 30 Exhibit Notice of Termination-Midwest-Boise, # 31 Exhibit Notice of Termination-Midwest-Columbus, # 32 Exhibit Notice of Termination-Midwest-Salt Lake, # 33 Exhibit Notice of Termination-Midwest-Roanoke, # 34 Exhibit Notice of Termination-Rydell-Grand Forks, # 35 Exhibit Notice of Termination-Corpat-Wichita, # 36 Exhibit Notice of Termination-Corpat-Billings, # 37 Exhibit Notice of Termination-Corpat-Bozeman, # 38 Exhibit Notice of Termination-Corpat-Great Falls, # 39 Exhibit Notice of Termination-Corpat-Helena, # 40 Exhibit Notice of Termination-Corpat-Kalispell, # 41 Exhibit Notice of Termination-Corpat-Missoula, # 42 Exhibit Notice of Termination-Corpat-Minot, # 43 Exhibit Notice of Termination-Corpat-Jackson, # 44 Exhibit Notice of Termination-Corpat-Idaho Falls, # 45 Exhibit Notice of Termination-Corpat-Rapid City)Hawk, John) Modified on 5/11/2017 (bshr, ). case number 2:17-cv-1220-DCN. (Entered: 05/10/2017)
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Old Jan 19, 2019, 1:30 am
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Originally Posted by AutoSlash
There's also some further location info in the exhibits that are referenced in the filings on this page:

COMPLAINT National-Alamo Car Rental System, USA, LLC vs Alaska Sales & services, Inc. Charleston Division. ( Filing fee $ 400 receipt number 0420-7147393). (Attachments: # 1 Civil Cover Sheet, # 2 Summons, # 3 LR 26.01 Answers, # 4 Exhibit Anchorage License Agreement, # 5 Exhibit Bentonville License Agreement, # 6 Exhibit Calumet/Houghton License Agreement, # 7 Exhibit Marquette License Agreement, # 8 Exhibit Boise License Agreement, # 9 Exhibit Columbus License Agreement, # 10 Exhibit Salt Lake City License Agreement, # 11 Exhibit Roanoke License Agreement, # 12 Exhibit Grand Forks License Agreement, # 13 Exhibit Wichita License Agreement, # 14 Exhibit Billings License Agreement, # 15 Exhibit Bozeman License Agreement, # 16 Exhibit Great Falls License Agreement, # 17 Exhibit Helena License Agreement, # 18 Exhibit Kalispell License Agreement, # 19 Exhibit Missoula License Agreement, # 20 Exhibit Minot License Agreement, # 21 Exhibit Jackson License Agreement, # 22 Exhibit Idaho Falls License Agreement, # 23 Exhibit Rapid City License Agreement, # 24 Exhibit Renewal Agreement, # 25 Exhibit Consent to Transfer Agreement, as executed by NACRS, Midwest, and Corpat, # 26 Exhibit Notice of Termination-Alaska-Anchorage, # 27 Exhibit Notice of Termination-Jones-Bentonville, # 28 Exhibit Notice of Termination-Keweenaw-Calumet, # 29 Exhibit Notice of Termination-Keweenaw-Marquette, # 30 Exhibit Notice of Termination-Midwest-Boise, # 31 Exhibit Notice of Termination-Midwest-Columbus, # 32 Exhibit Notice of Termination-Midwest-Salt Lake, # 33 Exhibit Notice of Termination-Midwest-Roanoke, # 34 Exhibit Notice of Termination-Rydell-Grand Forks, # 35 Exhibit Notice of Termination-Corpat-Wichita, # 36 Exhibit Notice of Termination-Corpat-Billings, # 37 Exhibit Notice of Termination-Corpat-Bozeman, # 38 Exhibit Notice of Termination-Corpat-Great Falls, # 39 Exhibit Notice of Termination-Corpat-Helena, # 40 Exhibit Notice of Termination-Corpat-Kalispell, # 41 Exhibit Notice of Termination-Corpat-Missoula, # 42 Exhibit Notice of Termination-Corpat-Minot, # 43 Exhibit Notice of Termination-Corpat-Jackson, # 44 Exhibit Notice of Termination-Corpat-Idaho Falls, # 45 Exhibit Notice of Termination-Corpat-Rapid City)Hawk, John) Modified on 5/11/2017 (bshr, ). case number 2:17-cv-1220-DCN. (Entered: 05/10/2017)
So it's safe to assume all these cities were franchises and are now corporate?
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Old Jan 19, 2019, 9:34 am
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I also thought there were other franchises in El Paso TX, Des Moines IA, and Erie PA?
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Old Jan 19, 2019, 9:51 am
  #13  
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Originally Posted by m907
So it's safe to assume all these cities were franchises and are now corporate?
Yeah, I'm curious too. This would mean all of the Montana and Idaho locations would now have switched from Franchised to Corporate. It does appear that the reservation system allows more one-way rentals from the Montana/Idaho/Rapid City locations now, vs previously when they would be restricted to FCAR or not allowed at all.

On another positive note, this might also mean that restrictions on earning Emerald Club credit at Enterprise locations where there was a franchised National may be coming to an end sometime soon.
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Old Jan 20, 2019, 12:47 am
  #14  
 
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what are the pros and cons of them switching to corporate?
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Old Jan 20, 2019, 1:36 am
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Originally Posted by Joonydell
what are the pros and cons of them switching to corporate?
Pros include seamless integration with Emerald Club rewards and coupons, and the possibility of building more Emerald Aisle locations (Salt Lake City being the most obvious candidate, followed by Anchorage and maybe Billings).

Cons include losing the small business type of relationship with a franchise you rent from often. Less flexibility for the location because they have to follow HQ's rules more strictly rather than their own. And some employees probably losing their jobs.
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