Pegasus Rental Cars was set up in Christchurch during 1989. The directors had seen overseas the use of older vehicles as a cheaper alternative to The Big 3 (Avis, Hertz, Budget). The cost of vehicles here prohibited this type of operation as strict requirements by the MOT on licensing and vehicle condition made the costs unrealistic.

Once importing of secondhand Japanese cars allowed the prices to fall to a realistic level the opportunity was seen to establish a rental operation that catered for people on a budget. We specifically targeted the incoming budget traveller or backpacker. The existing companies saw us as a threat, stealing their market share but we believe we actually offered another option to people who would otherwise have taken a bus or train. They have more flexibility and at a cost no more than that of public transport.

We initially imported our own vehicles and still bring in a limited number from Japan. Changing markets have meant it is some times more cost effective to buy here.

Pegasus depots are now located nationwide.

The need for more cars and hence more capital requirement has led to the expansion of the group through franchising. This allows Pegasus Rental Cars to continue to grow and consolidate, so that we can keep up with the ever increasing demand from one of the major growth industries in New Zealand - tourism.

Recently, there has been a push into the business market which has resulted in more repeat business. This has been largely achieved by the introduction of our customer loyalty programme, Blue Wing Business Club.

We are looking for partners in our business, more than wanting to sell what we have developed, and thus are looking for buyers with business sense and integrity to share in our future growth.

Benefits of a Pegasus Rental Car Franchise

1. Ownership of your own business with assistance of experts in the field.
2. Involvement with a well known brand name in the free independent traveller and budget rental car market, as well as repeat customers in the business client market.
3. Sharing of advertising and marketing costs nationally as well as internationally.
4. Purchasing price advantages through the established network and supply channels of a larger organisation.
5. Conferences for the sharing of knowledge and experiences with others in the industry.
6. Assistance in local selection of sites, marketing and promotion.
7. Training.
8. Access to advice on management and financing of your business.
9. The ability to move cars from town to town without the restriction of only having one available depot.
10. Assistance in selection and purchase of cars locally and from overseas (Japan).
11. Benefits of a nationwide booking system and referrals from other operators and overseas tourist centres.
12. Fully computerised rental management system and associated reporting, along with accounting systems.
13. Assistance in the event of holidays and sickness from others in your own organisation.
14. Budget and projection assistance in the setting up of a new and ongoing venture.
15. Additional revenue from commissions with Pegasus and on other associated rental vehicle products.
16. Fully functional online booking system with a powerful presence on the internet through a large network of websites.
17. Repeat business through the Pegasus Blue Wing Business Club.

Franchise Agreement

Pegasus Rental Cars has a franchise agreement which will be the basis of the contract between the parties.
The agreement is for 5 years with two renewals.
The agreement gives one "Pegasus Centre" right of operation within a defined area.

screen capture from on line booking system

What do I need to operate a Pegasus Franchise?

• The Rental Car industry is regulated and you will require a Rental Car Operators licence before commencing business.
• You will also need to sit a Certificate of Knowledge.
• All cars must be registered under a class for hire or reward and have a current certificate of fitness.
• A desire to succeed in your own business is essential.
• Enjoying dealing with people is essential.
• A fundamental business knowledge is essential.

There are and have been many excellent articles in recent magazines and business papers on franchising.
We strongly suggest you search these out of bookshops and libraries.

The Franchise Association has some very good information packs available for the budding franchisee which give a good guide to what you should expect. It's worthwhile subscribing to the FANZ monthly magazine which is full of interesting franchising information.

Franchise NZ Magazine
www.franchise.co.nz

Franchise Association of NZ
www.franchise.org.nz