Europcar Ireland has been sold to Europcar for an estimated €26m! If you’re not familiar with how big rental brands work, that statement could seem a bit confusing. So let me explain.

Travelling around Europe, you see the same car and van hire brands everywhere you go. Most people probably assume that they are all run by the same company, but in fact many are operated as franchises under licence from a parent company.

Expanding into new countries has pros and cons for big companies. One the one hand, much lower levels of investment are required, as the franchisee foots much of the bill. On the other hand, it’s necessary to sacrifice some profit and control of the business to the franchisee.

Since Europcar floated on the Paris stock exchange last year, it has introduced a policy of buying back some of its best-performing franchises. Europcar Ireland is the second major franchise Europcar has bought back during this period.

By taking control of franchises such as this one, Europcar is likely to be able to make cost savings in terms of vehicle procurement and back office functions. The group will also gain firmer control of pricing in the country.

Europcar’s customers in Ireland are unlikely to notice any difference. The firm’s branding, staffing and service offerings will remain broadly unchanged. So there’s no need to worry if you’re a regular Europcar customer.