Dollar_Rent_A_Car 2025 Franchise FAQ - FDD Ninja

Question 1

Across all listed states, what was the highest number of Dollar Rent A Car outlets opened in a single state during a single year?

Accepted Answer

data systems of the franchisor and reasonable calculations derived from those reports

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Table No. 4 Status of Company-Owned Outlets For Years 2022 to 2024

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 2

Besides the events of default listed in the Dollar Rent A Car Franchise Agreement, what other actions can lead to termination?

Accepted Answer

The following shall constitute additional events of default, in addition to the events of default listed in the Franchise Agreements, and shall result in automatic termination of the Franchise Agreements upon written notice by Hertz, Dollar or Thrifty, unless otherwise specified: (i) any action, operation, business practice or business use whereby the Hertz Marks, the Dollar Marks or the Thrifty Marks are used in any manner together, or in any combination, in violation of the Franchise Agreements, the Operations Guide, and/or this Addendum, which is not cured to the satisfaction of Hertz, Dollar and Thrifty in their sole discretion within twenty (20) days of receipt of written notice; (ii) any advertising, marketing or promotion whereby the Hertz Marks, the Dollar Marks or the Thrifty Marks are used together, or in any combination, in violation of the Franchise Agreements, the Operations Guides, and/or this Addendum, which is not cured to the satisfaction of Hertz, Dollar and Thrifty in their sole discretion within twenty (20) days of receipt of written notice; (iii) any transfer, sale or other disposition of one or more of the Franchise Agreements without the express written consent of Hertz, Dollar and Thrifty; and (iv) any failure to comply with any provision of this Addendum, which is not cured to the satisfaction of Hertz, Dollar and Thrifty in their sole discretion within twenty (20) days of receipt of written notice.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 3

What documents outline the principal obligations of a Dollar Rent A Car franchisee?

Accepted Answer

[Item 9: FRANCHISEE'S OBLIGATIONS]

# **ITEM 9 FRANCHISEE'S OBLIGATIONS**

**This table lists your principal obligations under the Franchise Agreement and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this Disclosure Document.**

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| Obligation | Section in Agreement | Disclosure Document |
|---|---|---|
| a. Site selection and acquisition/lease | Sections 12.3, 13.5, 17.1 and 17.2 of Franchise Agreement | Items 6, 8 and 11 |
| b. Pre-opening purchases/leases | Sections 12.4, 12.10, 12.19, 12.21, 12.25, 13.5, 13.9, 16.1, 16.2, 16.3 and 16.4 of Franchise Agreement | Items 5, 7, 8 and 11 |
| c. Site development and other pre- | Sections 12.3, 12.10, 13.5, 17.1 and 17.2 of | Items 8 and 11 |
| opening requirements | Franchise Agreement |  |
| d. Initial and ongoing training | Section 11 of Franchise Agreement | Item 11 |
| e. Opening | Section 12.1, 12.3, and 13.5 of Franchise Agreement | Item 11 |
| f. Fees | Sections 4, 5, 6, 7.1, 7.2, 10, 11.1, 11.2, 11.3, 11.4, 12.23, 13.1, 13.11, 15.1, 15.2, 16.4, 21.4(g), and 30.1 of Franchise Agreement | Items 5, 6, 7 and 17 |
| g. Compliance with standards and policies/Operations Guide | Section 10.1, 12, 31.5 and 31.6 of Franchise Agreement; Sections 5, 6, 7 and 11 of Multiple Brand Franchising Addendum | Item 8 |
| h. Trademarks and proprietary information | Sections 12.7, 12.13, and 18 of Franchise Agreement; Sections 5, 6 and 7 of Multiple Brand Franchising Addendum | Items 13 and 14 |
| i. Restrictions on products/services offered | Sections 2.1, 3.2, 12.4, 12.7, 12.9, 12.19, 12.20, 12.21, 12.23, and 12.26 of Franchise Agreement; Section 6 of Multiple Brand Franchising Addendum | Items 8, 11 and 16 |
| j. Warranty and customer service | Sections 12.4, 12.5, 12.11, 12.12 12.21, | Items 11 and 16 |
| requirements | and 12.22 of Franchise Agreement |  |
| k. Territorial development and sales | Sections 12.1 and 12.4 and Attachments | Item 12 |
| quotas | A, B, and D to Franchise Agreement |  |
| l. Ongoing product/service offered | Sections 10, 12.4, 12.5, 12.10, 12.19, 12.20, 12.21, 12.22, 12.23, 12.25, 13.6, 13.11 and Attachment E to Franchise Agreement | Items 5, 6 and 8 |
| m. Maintenance, appearance and | Sections 12.3, 12.4, 12.5, 12.9 and 12.10 of | Items 6 and 17 |
| remodeling requirements | Franchise Agreement |  |
| n. Insurance | Section 16 of Franchise Agreement | Items 5, 6, 7, 8 and 11 |
| o. Advertising | Sections 8, 9, 12.15, 12.16, 12.17, and 12.31 of Franchise Agreement; Section 5 of Multiple Brand Franchising Addendum | Items 6 and 11 |
| p. Indemnification | Section 25.2 of Franchise Agreement | Item 17 |
| q. Owner's participation/ | Section 12.2, 24.7 and Attachment C to | Item 15 |
| management/staffing | Franchise Agreement |  |
| r. Records and reports | Sections 12.21 and 14 of Franchise Agreement | Item 17 |
| s. Inspections and audits | Section 15 of Franchise Agreement | Item 6 |
| t. Transfer | Sections 20, 21, 22, and 23 of Franchise Agreement | Item 17 |
| u. Renewal or Extension of Rights | Sections 7.1 and 7.2 of Franchise Agreement | Item 17 |
| v. Post-termination obligations | Sections 19.1, 19.6 and 19.7 of Franchise Agreement | Item 17 |
| w. Non-competition covenants | Sections 12.18 and 24 of Franchise Agreement | Item 17 |
| x. Dispute resolution | Section 30 of Franchise Agreement | Item 17 |
| y. Other | Not applicable | Not applicable |

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Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 58–60)

Question 4

What are the four requirements for a manager of a Dollar Rent A Car franchise?

Accepted Answer

You must employ (or you may serve as) a manager who must: (i) be disclosed to us; (ii) complete required training; and (iii) have sufficient Vehicle Rental Business experience to manage and operate Your Franchised Business; and (iv) devote full time to the management and operation of Your Franchised Business. An employed manager is not required to have an equity interest in Your Franchised Business. You may disclose to your manager the confidential, proprietary information we give to you, but only to the extent necessary for operation of Your Franchised Business. We require your manager to sign a Confidentiality Agreement (Managerial Employees), the form of which is included as Attachment H to the Franchise Agreement, which is attached to this Disclosure Document as Exhibit A.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 74–75)

Question 5

How many Dollar Rent A Car outlets opened in total during 2022?

Accepted Answer

data systems of the franchisor and reasonable calculations derived from those reports

![](_page_91_Picture_0.jpeg)

Table No. 4 Status of Company-Owned Outlets For Years 2022 to 2024

| State | Year | Outlets at the Start of the Year | Outlets Opened | Outlets Reacquired from Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of Year |
|---|---|---|---|---|---|---|---|
| AL | 2022 | 4 | 1 | 0 | 0 | 0 | 5 |
|  | 2023 | 5 | 0 | 0 | 0 | 0 | 5 |
|  | 2024 | 5 | 0 | 0 | 0 | 0 | 5 |
| AR | 2022 | 2 | 0 | 0 | 0 | 2 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| AZ | 2022 | 2 | 1 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 1 | 0 | 0 | 0 | 4 |
| CA | 2022 | 13 | 13 | 0 | 0 | 0 | 26 |
|  | 2023 | 26 | 0 | 0 | 2 | 0 | 24 |
|  | 2024 | 24 | 3 | 0 | 0 | 0 | 27 |
| CO | 2022 | 4 | 2 | 0 | 0 | 0 | 6 |
|  | 2023 | 6 | 0 | 0 | 0 | 0 | 6 |
|  | 2024 | 6 | 2 | 0 | 0 | 0 | 8 |
| CT | 2022

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 6

How many Dollar Rent A Car outlets were reacquired by the franchisor in 2022?

Accepted Answer

| State | Year | Outlets at the Start of the Year | Outlets Opened | Outlets Reacquired from Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of Year |
|---|---|---|---|---|---|---|---|
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 2 |
| Total Outlets | 2022 | 139 | 44 | 0 | 1 | 4 | 178 |
|  | 2023 | 178 | 2 | 0 | 7 | 0 | 173 |
|  | 2024 | 173 | 12 | 0 | 4 | 0 | 181 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 7

How many Dollar Rent A Car outlets in total ceased operations for other reasons during 2024?

Accepted Answer

| 0 |
|  | 2024 | 2 |
Note: There were no transfers for the time period indicated above

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# Table No. 3 **Status of Franchise Outlets** For Years 2022 to 2024

| State | Year | Outlets at the Start of the Year | Outlets Opened | Terminations | Non Renewals | Reacquired by Franchisor | Ceased Operations other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| AK | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| AL | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| AR | 2022 | 0 | 2 | 0 | 0 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 8

How many Dollar Rent A Car outlets in total did not renew their franchise agreement in 2024?

Accepted Answer

| State | Year | Outlets at the Start of the Year | Outlets Opened | Terminations | Non Renewals | Reacquired by Franchisor | Ceased Operations other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
|  | 2024 | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
| SD | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| TN | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| TX | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
| VI | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| WA | 2022 | 4 | 0 | 0 | 0 | 0 | 1 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 1 | 0 | 0 | 0 | 1 | 3 |
| WY | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Total Outlets | 2022 | 58 | 8 | 1 | 0 | 0 | 3 | 62 |
|  | 2023 | 62 | 3 | 1 | 0 | 0 | 0 | 64 |
|  | 2024 | 64 | 10 | 0 | 0 | 0 | 6 | 68 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 9

How many Dollar Rent A Car outlets in total were terminated during 2023?

Accepted Answer

appropriate state regulatory agencies. ![](_page_85_Picture_0.jpeg) # **ITEM 20 OUTLETS AND FRANCHISEE INFORMATION** # Table No. 1 **Systemwide Outlet Summary** For Years 2022 to 2024 | Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change | |----------------------|------|----------------------------------------|--------------------------------------|------------| | | 2022 | 58 | 62 | 4 | | Franchised | 2023 | 62 | 64 | 2 | | | 2024 | 64 | 68 | 4 | | | 2022 | 139 | 178 | 39 | | Company Owned | 2023 | 178 | 173 | -5 | | | 2024 | 173 | 181 | 8 | | | 2022 | 197 | 240 | 43 | | Total Outlets | 2023 | 240 | 237 | -3 | | | 2024 | 237 | 249 | 12 | ![](_page_86_Picture_0.jpeg) Table No. Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 10

What is the total estimated initial investment for a Dollar Rent A Car franchise, excluding real estate and improvements?

Accepted Answer

| Type of | Amount | Method of | When due | To whom payment |
|---|---|---|---|---|
| expenditure |  | payment |  | is to be made |
|  |  |  |  |  |
| Initial Franchise Fee 1 | $25,000 to $125,000 | Lump Sum or Installments | Execution of Franchise Agreement or as otherwise agreed to by us; if installments, within three years | Us |
| Training Expenses 2 | $3,000 | As Arranged | As Arranged | Suppliers |
| Passenger Cars 3 | $750,000 to $15,000,000 | As Arranged | As Arranged | Automobile Dealers |
| Courtesy Vehicles (4) | $55,000 - $350,000 per location | Purchased | At Time of Purchase | Automobile Dealers |
| Equipment and | $5,000 to | Lump Sum | Prior to Opening | Suppliers or Us |
| Supplies 5 | $25,000 |  |  |  |
| Insurance 6 | $5,000 to $45,000 | As Required | As Required | Insurance Company |
| Real Estate & | (see footnote) | As Required | As Required | Seller or Landlord |
| Improvements 7 |  |  |  |  |
| Professional Fees 8 | $3,000 to $10,000 | As Required | As Required | Professionals |
| Computer System, Hardware and Software 9 | $11,500 to $250,000 | Cash or Financed | As Required | Suppliers (including approved suppliers, where required) |
| Optional Software 10 | $1,500 - $15,000 | As Required | Lump Sum or Deposit and Monthly | Suppliers or Us |
| Business License 11 | $100 to $500 | Lump Sum | Before Commencing Business | Governmental Authorities |
| Miscellaneous | $200 to $500 | As Arranged | As Needed | Utility Companies |
| Installation Fees |  |  |  |  |
| 12 |  |  |  |  |
| Additional Funds – | $20,000 to | As Incurred | As Incurred | Employees, |
| 3 months 13 | $50,000 |  |  | Suppliers |
| Total (excluding Real Estate & Improvements) 14 | $879,300 to $15,874,000 |  |  |  |

Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 46–52)

Question 11

What is the total expected amortization expense for Dollar Rent A Car?

Accepted Answer

| | December 31, 2023 | | | | | | | |-------------------------------------|-------------------|-----------------------------|-----------------------------|--|--------------------------|--|--| | (In millions) | | Gross Carrying Amount | Accumulated Amortization | | Net Carrying Value | | | | Amortizable intangible assets: | | | | | | | | | Customer-related | \$ | 269 | \$ (269) \$ | | — | | | | Concession rights | | 407 | (406) | | 1 | | | | Technology-related intangibles | | 342 | (300) | | 42 | | | | Other(1) | | 38 | (36) | | 2 | | | | Total | | 1,056 | (1,011) | | 45 | | | | Indefinite-lived intangible assets: | | | | | | | | | Tradenames(2) | | 2,794 | — | | 2,794 | | | | Other(3) | | 24 | — | | 24 | | | | Total | | 2,818 | — | | 2,818 | | | | Total intangible assets, net | \$ | 3,874 | \$ (1,011) \$ | | 2,863 | | | | | | | | | | | | ⁽¹⁾ Other amortizable intangible assets primarily include reacquired franchise rights. ⁽³⁾ Other indefinite-lived intangible asse Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 12

What was the total non-vehicle debt for Dollar Rent A Car as of December 31, 2024?

Accepted Answer

| Facility                                                         | Weighted Average Interest Rate as of December 31, 2024 | Fixed or Floating Interest Rate | Maturity         | December 31, 2024 | December 31, 2023 |
|------------------------------------------------------------------|--------------------------------------------------------------------|------------------------------------------|------------------|----------------------|----------------------|
| Incremental Term B Loan | 8.29% | Floating | 6/2028 | 495 | 500 |
| Term C Loan | 8.18% | Floating | 6/2028 | 245 | 245 |
| First Lien Senior Notes(1) | 12.63% | Fixed | 7/2029 | 1,250 | — |
| Exchangeable Notes(2) | 8.00% | Fixed | 7/2029 | 250 | — |
| Senior Notes Due 2026 | 4.63% | Fixed | 12/2026 | 500 | 500 |
| Senior Notes Due 2029 | 5.00% | Fixed | 12/2029 | 1,000 | 1,000 |
| Other Non-Vehicle Debt(3) | 15.76% | Fixed | Various | — | 2 |
| Unamortized Debt Issuance Costs |  |  |  | (66) | (66) |
| and Net (Discount) Premium(4) |  |  |  |  |  |
| Total Non-Vehicle Debt |  |  |  | 5,104 | 3,449 |

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 13

What was the total number of Dollar Rent A Car outlets at the end of 2023?

Accepted Answer

| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change | |----------------------|------|----------------------------------------|--------------------------------------|------------| | | 2022 | 58 | 62 | 4 | | Franchised | 2023 | 62 | 64 | 2 | | | 2024 | 64 | 68 | 4 | | | 2022 | 139 | 178 | 39 | | Company Owned | 2023 | 178 | 173 | -5 | | | 2024 | 173 | 181 | 8 | | | 2022 | 197 | 240 | 43 | | Total Outlets | 2023 | 240 | 237 | -3 | | | 2024 | 237 | 249 | 12 | Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 14

What was the total number of Dollar Rent A Car outlets opened across all listed states in 2024?

Accepted Answer

| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change | |----------------------|------|----------------------------------------|--------------------------------------|------------| | | 2022 | 58 | 62 | 4 | | Franchised | 2023 | 62 | 64 | 2 | | | 2024 | 64 | 68 | 4 | | | 2022 | 139 | 178 | 39 | | Company Owned | 2023 | 178 | 173 | -5 | | | 2024 | 173 | 181 | 8 | | | 2022 | 197 | 240 | 43 | | Total Outlets | 2023 | 240 | 237 | -3 | | | 2024 | 237 | 249 | 12 | Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 86–100)

Question 15

How does the initial franchise fee for Dollar Rent A Car, as described in Item 5, relate to the potential total initial investment outlined in Item 7?

Accepted Answer

| Type of | Amount | Method of | When due | To whom payment |
|---|---|---|---|---|
| expenditure |  | payment |  | is to be made |
|  |  |  |  |  |
| Initial Franchise Fee 1 | $25,000 to $125,000 | Lump Sum or Installments | Execution of Franchise Agreement or as otherwise agreed to by us; if installments, within three years | Us |
| Training Expenses 2 | $3,000 | As Arranged | As Arranged | Suppliers |
| Passenger Cars 3 | $750,000 to $15,000,000 | As Arranged | As Arranged | Automobile Dealers |
| Courtesy Vehicles (4) | $55,000 - $350,000 per location | Purchased | At Time of Purchase | Automobile Dealers |
| Equipment and | $5,000 to | Lump Sum | Prior to Opening | Suppliers or Us |
| Supplies 5 | $25,000 |  |  |  |
| Insurance 6 | $5,000 to $45,000 | As Required | As Required | Insurance Company |
| Real Estate & | (see footnote) | As Required | As Required | Seller or Landlord |
| Improvements 7 |  |  |  |  |
| Professional Fees 8 | $3,000 to $10,000 | As Required | As Required | Professionals |
| Computer System, Hardware and Software 9 | $11,500 to $250,000 | Cash or Financed | As Required | Suppliers (including approved suppliers, where required) |
| Optional Software 10 | $1,500 - $15,000 | As Required | Lump Sum or Deposit and Monthly | Suppliers or Us |
| Business License 11 | $100 to $500 | Lump Sum | Before Commencing Business | Governmental Authorities |
| Miscellaneous | $200 to $500 | As Arranged | As Needed | Utility Companies |
| Installation Fees |  |  |  |  |
| 12 |  |  |  |  |
| Additional Funds – | $20,000 to | As Incurred | As Incurred | Employees, |
| 3 months 13 | $50,000 |  |  | Suppliers |
| Total (excluding Real Estate & Improvements) 14 | $879,300 to $15,874,000 |  |  |  |

Question 16

How does the 'initial franchise fee' for Dollar Rent A Car (Item 5) compare to the 'training expenses' listed in Item 7?

Accepted Answer

| Type of | Amount | Method of | When due | To whom payment |
|---|---|---|---|---|
| expenditure |  | payment |  | is to be made |
|  |  |  |  |  |
| Initial Franchise Fee 1 | $25,000 to $125,000 | Lump Sum or Installments | Execution of Franchise Agreement or as otherwise agreed to by us; if installments, within three years | Us |
| Training Expenses 2 | $3,000 | As Arranged | As Arranged | Suppliers |

Question 17

For how long did Hertz agree to maintain specific training requirements and ensure proper customer disclosures as part of the settlement with the City of San Francisco, and how does this compare to Dollar Rent A Car's training and disclosure policies?

Accepted Answer

In addition to the payment, Hertz and ATS agreed to several operations-focused mandates including maintaining specific training requirements and ensuring proper customer disclosures for eighteen (18) months.

Source: Item 3 — LITIGATION (FDD pages 26–37)

Question 18

What is the range of the initial franchise fee for Dollar Rent A Car (Item 5) and how does it compare to the estimated cost of passenger cars in the initial investment (Item 7)?

Accepted Answer

rocess and emerged from bankruptcy.

![](_page_37_Picture_0.jpeg)

# **ITEM 5 INITIAL FEES**

# **Initial Franchise Fee**

You will be required to pay us an initial franchise fee which will vary as determined by us depending on a number of factors including the following: (1) potential car fleet size; (2) potential area population growth; (3) potential area economic growth; (4) existing and potential for future growth of hotel accommodations; (5) existing Dollar national account customers located in the area; (6) existing and potential for future growth of local airport passenger traffic; and (7) extent of the recreational or regional markets. The range of the initial franchise fees will vary extensively.

The minimum initial franchise fee that will be required for a new franchisee (a franchisee who is not an existing Dollar franchisee) is \$25,000. We estimate the initial franchise fee will range from \$25,000 (except in certain circumstances) to \$500,000 based on a starting fleet of 30 to 300 rental cars. Initial franchise fees may vary, based on the factors described above. For existing franchisees, we estimate that the initial franchise fee may be as low as \$25,000.

If you are a transferee or an existing Franchised Business, we may, in our discretion, charge a transfer fee under certain circumstances. The transfer fee is calculated as Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you. In 2024, a transfer fee of \$137,960 was charged in connection with 1 transfer.

The initial franchise fee (or transfer fee, if applicable) is payable in a lump sum, or in our discretion, we may allow a portion of the fee to be paid in installments over a period not to exceed three years. Interest will not be charged on the deferred portion of the fee. The initial franchise fee is not refundable under any circumstances.

You may be required to have "**Courtesy Vehicles**" to transport customers to and from their rental vehicles. The type of Courtesy Vehicle may be determined in part by airport and/or governmental requirements, such as those found in the ADA, and must be approved by us. The number and size of Courtesy Vehicles needed will vary based on the size of the market served, the layout of the airport, the location of the rental facility and similar factors. If you have more than one brand, and unless we otherwise authorize, your Courtesy Vehicles cannot be branded with the Marks of more than one brand. That is, unless we otherwise authorize in writing, you must maintain Courtesy Vehicles branded only with the Dollar Marks to transport Dollar rental customers;

Question 19

What is the range of the initial franchise fee for Dollar Rent A Car (Item 5) and how does it compare to the potential revenue generated in a 'non-exclusive territory' (Item 12)?

Accepted Answer

rocess and emerged from bankruptcy.

![](_page_37_Picture_0.jpeg)

# **ITEM 5 INITIAL FEES**

# **Initial Franchise Fee**

You will be required to pay us an initial franchise fee which will vary as determined by us depending on a number of factors including the following: (1) potential car fleet size; (2) potential area population growth; (3) potential area economic growth; (4) existing and potential for future growth of hotel accommodations; (5) existing Dollar national account customers located in the area; (6) existing and potential for future growth of local airport passenger traffic; and (7) extent of the recreational or regional markets. The range of the initial franchise fees will vary extensively.

The minimum initial franchise fee that will be required for a new franchisee (a franchisee who is not an existing Dollar franchisee) is \$25,000. We estimate the initial franchise fee will range from \$25,000 (except in certain circumstances) to \$500,000 based on a starting fleet of 30 to 300 rental cars. Initial franchise fees may vary, based on the factors described above. For existing franchisees, we estimate that the initial franchise fee may be as low as \$25,000.

If you are a transferee or an existing Franchised Business, we may, in our discretion, charge a transfer fee under certain circumstances. The transfer fee is calculated as Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you. In 2024, a transfer fee of \$137,960 was charged in connection with 1 transfer.

The initial franchise fee (or transfer fee, if applicable) is payable in a lump sum, or in our discretion, we may allow a portion of the fee to be paid in installments over a period not to exceed three years. Interest will not be charged on the deferred portion of the fee. The initial franchise fee is not refundable under any circumstances.

You may be required to have "**Courtesy Vehicles**" to transport customers to and from their rental vehicles. The type of Courtesy Vehicle may be determined in part by airport and/or governmental requirements, such as those found in the ADA, and must be approved by us. The number and size of Courtesy Vehicles needed will vary based on the size of the market served, the layout of the airport, the location of the rental facility and similar factors. If you have more than one brand, and unless we otherwise authorize, your Courtesy Vehicles cannot be branded with the Marks of more than one brand. That is, unless we otherwise authorize in writing, you must maintain Courtesy Vehicles branded only with the Dollar Marks to transport Dollar rental customers; and if you operate multiple brands under a Multiple Brand Addendum, you must maintain Courtesy Vehicles branded only with the Hertz Marks to transport Hertz customers, Courtesy Vehicles branded only with the Dollar Marks to transport Dollar customers or Courtesy Vehicles branded only with the Thrifty Marks to transport Thrifty customers, depending on the brands you operate from your location.

From time-to-time our Parent or our other affiliates may offer for sale the assets of certain companyowned Vehicle Rental Business locations in conjunction with a Franchise Agreement for the operation of a Dollar Business at such locations. If you purchase one of our Parent's or affiliates' existing businesses, your initial franchise fee may be substantially higher than the initial franchise fee described above. There is a broad range of initial franchise fees for these locations, based upon the factors described above, the revenue generated from the location, the fleet size, the value of the assets, and other factors, all of which will depend upon the particular facts and circumstances related to the location and transaction.

Except as otherwise described above, all fees are payable in a lump sum.

Question 20

What is the range of the initial franchise fee for Dollar Rent A Car (Item 5) and how does this fee compare to the total estimated initial investment (Item 7)?

Accepted Answer

The minimum initial franchise fee that will be required for a new franchisee (a franchisee who is not an existing Dollar franchisee) is $25,000. We estimate the initial franchise fee will range from $25,000 (except in certain circumstances) to $500,000 based on a starting fleet of 30 to 300 rental cars. Initial franchise fees may vary, based on the factors described above. For existing franchisees, we estimate that the initial franchise fee may be as low as $25,000.

| Type of | Amount | Method of | When due | To whom payment |
|---|---|---|---|---|
| expenditure |  | payment |  | is to be made |
|  |  |  |  |  |
| Initial Franchise Fee 1 | $25,000 to $125,000 | Lump Sum or Installments | Execution of Franchise Agreement or as otherwise agreed to by us; if installments, within three years | Us |
| Training Expenses 2 | $3,000 | As Arranged | As Arranged | Suppliers |
| Passenger Cars 3 | $750,000 to $15,000,000 | As Arranged | As Arranged | Automobile Dealers |
| Courtesy Vehicles (4) | $55,000 - $350,000 per location | Purchased | At Time of Purchase | Automobile Dealers |
| Equipment and | $5,000 to | Lump Sum | Prior to Opening | Suppliers or Us |
| Supplies 5 | $25,000 |  |  |  |
| Insurance 6 | $5,000 to $45,000 | As Required | As Required | Insurance Company |
| Real Estate & | (see footnote) | As Required | As Required | Seller or Landlord |
| Improvements 7 |  |  |  |  |
| Professional Fees 8 | $3,000 to $10,000 | As Required | As Required | Professionals |
| Computer System, Hardware and Software 9 | $11,500 to $250,000 | Cash or Financed | As Required | Suppliers (including approved suppliers, where required) |
| Optional Software 10 | $1,500 - $15,000 | As Required | Lump Sum or Deposit and Monthly | Suppliers or Us |
| Business License 11 | $100 to $500 | Lump Sum | Before Commencing Business | Governmental Authorities |
| Miscellaneous | $200 to $500 | As Arranged | As Needed | Utility Companies |
| Installation Fees |  |  |  |  |
| 12 |  |  |  |  |
| Additional Funds – | $20,000 to | As Incurred | As Incurred | Employees, |
| 3 months 13 | $50,000 |  |  | Suppliers |
| Total (excluding Real Estate & Improvements) 14 | $879,300 to $15,874,000 |  |  |  |

Question 21

What is the range of the initial franchise fee for Dollar Rent A Car, as stated in Item 5, and how does it compare to the cost of 'training expenses' as listed in Item 7?

Accepted Answer

| Type of | Amount | Method of | When due | To whom payment |
|---|---|---|---|---|
| expenditure |  | payment |  | is to be made |
|  |  |  |  |  |
| Initial Franchise Fee 1 | $25,000 to $125,000 | Lump Sum or Installments | Execution of Franchise Agreement or as otherwise agreed to by us; if installments, within three years | Us |
| Training Expenses 2 | $3,000 | As Arranged | As Arranged | Suppliers |

Question 22

What is the range of the initial franchise fee for Dollar Rent A Car, as stated in Item 5, and how does it compare to the potential costs associated with 'training expenses' and ongoing operational support as outlined in Item 11?

Accepted Answer

rocess and emerged from bankruptcy.

![](_page_37_Picture_0.jpeg)

# **ITEM 5 INITIAL FEES**

# **Initial Franchise Fee**

You will be required to pay us an initial franchise fee which will vary as determined by us depending on a number of factors including the following: (1) potential car fleet size; (2) potential area population growth; (3) potential area economic growth; (4) existing and potential for future growth of hotel accommodations; (5) existing Dollar national account customers located in the area; (6) existing and potential for future growth of local airport passenger traffic; and (7) extent of the recreational or regional markets. The range of the initial franchise fees will vary extensively.

The minimum initial franchise fee that will be required for a new franchisee (a franchisee who is not an existing Dollar franchisee) is \$25,000. We estimate the initial franchise fee will range from \$25,000 (except in certain circumstances) to \$500,000 based on a starting fleet of 30 to 300 rental cars. Initial franchise fees may vary, based on the factors described above. For existing franchisees, we estimate that the initial franchise fee may be as low as \$25,000.

If you are a transferee or an existing Franchised Business, we may, in our discretion, charge a transfer fee under certain circumstances. The transfer fee is calculated as Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you. In 2024, a transfer fee of \$137,960 was charged in connection with 1 transfer.

The initial franchise fee (or transfer fee, if applicable) is payable in a lump sum, or in our discretion, we may allow a portion of the fee to be paid in installments over a period not to exceed three years. Interest will not

Question 23

What is the range of the initial franchise fee for Dollar Rent A Car, as stated in Item 5, and how does it compare to the potential costs associated with 'advertising' and marketing efforts as outlined in Item 11?

Accepted Answer

(7) extent of the recreational or regional markets. The range of the initial franchise fees will vary extensively.

The minimum initial franchise fee that will be required for a new franchisee (a franchisee who is not an existing Dollar franchisee) is \$25,000. We estimate the initial franchise fee will range from \$25,000 (except in certain circumstances) to \$500,000 based on a starting fleet of 30 to 300 rental cars. Initial franchise fees may vary, based on the factors described above. For existing franchisees, we estimate that the initial franchise fee may be as low as \$25,000.

If you are a transferee or an existing Franchised Business, we may, in our discretion, charge a transfer fee under certain circumstances. The transfer fee is calculated as Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you. In 2024, a transfer fee of \$137,960 was charged in connection with 1 transfer.

The initial franchise fee (or transfer fee, if applicable) is payable in a lump sum, or in our discretion, we may allow a portion of the fee to be paid in installments over a period not to exceed three years. Interest will not be charged on the deferred portion of the fee. The initial franchise fee is not refundable under any circumstances.

You may be required to have "**Courtesy Vehicles**" to transport customers to and from their rental vehicles.

Question 24

What is the range of the initial franchise fee for Dollar Rent A Car, as stated in Item 5, and how does it compare to the potential costs associated with 'site selection and acquisition/lease' as outlined in Item 9?

Accepted Answer

(7) extent of the recreational or regional markets. The range of the initial franchise fees will vary extensively.

The minimum initial franchise fee that will be required for a new franchisee (a franchisee who is not an existing Dollar franchisee) is \$25,000. We estimate the initial franchise fee will range from \$25,000 (except in certain circumstances) to \$500,000 based on a starting fleet of 30 to 300 rental cars. Initial franchise fees may vary, based on the factors described above. For existing franchisees, we estimate that the initial franchise fee may be as low as \$25,000.

If you are a transferee or an existing Franchised Business, we may, in our discretion, charge a transfer fee under certain circumstances. The transfer fee is calculated as Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you. In 2024, a transfer fee of \$137,960 was charged in connection with 1 transfer.

Question 25

What is the range of the initial franchise fee for Dollar Rent A Car, as stated in Item 5, and what are the payment options for this fee, as detailed in Item 7?

Accepted Answer

rocess and emerged from bankruptcy.

![](_page_37_Picture_0.jpeg)

# **ITEM 5 INITIAL FEES**

# **Initial Franchise Fee**

You will be required to pay us an initial franchise fee which will vary as determined by us depending on a number of factors including the following: (1) potential car fleet size; (2) potential area population growth; (3) potential area economic growth; (4) existing and potential for future growth of hotel accommodations; (5) existing Dollar national account customers located in the area; (6) existing and potential for future growth of local airport passenger traffic; and (7) extent of the recreational or regional markets. The range of the initial franchise fees will vary extensively.

The minimum initial franchise fee that will be required for a new franchisee (a franchisee who is not an existing Dollar franchisee) is \$25,000. We estimate the initial franchise fee will range from \$25,000 (except in certain circumstances) to \$500,000 based on a starting fleet of 30 to 300 rental cars. Initial franchise fees may vary, based on the factors described above. For existing franchisees, we estimate that the initial franchise fee may be as low as \$25,000.

If you are a transferee or an existing Franchised Business, we may, in our discretion, charge a transfer fee under certain circumstances. The transfer fee is calculated as Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you.

Question 26

For the years ended December 31, 2022, 2023 and 2024, what were the fair value adjustments recorded in the consolidated statements of operations for Hertz Global, according to the Dollar Rent A Car FDD?

Accepted Answer

Liabilities:                                           |           |                   |          |           |                   |    |         |    |         |    |       |  |
| Public Warrants                                        | \$ 178 | \$ —           | \$ —  | \$ 178 | \$ 453         | \$ | —       | \$ | —       | \$ | 453   |  |
| Exchange Feature                                       | \$ —   | \$ —           | \$ 61 | \$ 61  | \$ —           | \$ | —       | \$ | —       | \$ | —     |  |

#### Cash Equivalents and Restricted Cash Equivalents

The Company's cash equivalents and restricted cash equivalents primarily consist of investments in money market funds and bank money market and interest-bearing accounts. The Company determines the fair value of cash equivalents and restricted cash equivalents using a market approach based on quoted prices in active markets (i.e., Level 1 inputs).

#### Public Warrants – Hertz Global

Hertz Global's Public Warrants are classified as liabilities and recorded at fair value in the accompanying consolidated balance sheets as of December 31, 2024 and 2023 in accordance with the provisions of ASC 4

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 27

Is a Courtesy Vehicle or shuttle bus required for Dollar Rent A Car airport rental locations?

Accepted Answer

. However, you must not identify or brand any rental vehicle you use interchangeably between your car rental businesses.
- 4. Airport Rental Locations must have a Courtesy Vehicle or shuttle bus, as applicable, to transport customers to their rental vehicles. The number and size of Courtesy Vehicles or shuttle buses will vary based on the size of the market, the layout of the airport, the location of the rental facility and similar factors. The purchase price for Courtesy Vehicles ranges from approximately \$55,000 to over \$350,000 per vehicle. Depending on your credit and other factors, you may finance the purchase of such vehicles with local banks, vehicle manufacturers or other lending institutions. The information in the preceding chart does not include an estimate for the inventory of Courtesy Vehicles to be used for multiple brands.

Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 46–52)

Question 28

Under what conditions can Dollar Rent A Car suspend a franchisee's access to the Reservation System?

Accepted Answer

We have the right to suspend your access to our Reservation System and your listing at www.dollar.com if you do not pay your reservations fees timely.

These procedures are described in our Operations Guide and may be revised or revoked by us at any time.

Source: Item 6 — OTHER FEES (FDD pages 39–46)

Question 29

According to Dollar Rent A Car, what factors will influence the level of contributions to its retirement plans in 2025 and beyond?

Accepted Answer

n investments where the fair value measurement utilizes NAV, and as such, are not classified in the fair value levels above.

#### *Contributions*

The Company's policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time, the Company makes contributions beyond those legally required. In 2024, the Company made a \$9 million contribution to the Hertz Retirement Plan a

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 30

According to the Dollar Rent A Car FDD, how would an increase in expected volatility affect the fair value measurement of the Exchange Feature, holding other inputs constant?

Accepted Answer

The significant unobservable input used in the fair value measurement of the Exchange Feature is expected volatility. Holding other inputs constant, an increase (decrease) in expected volatility would have resulted in a higher (lower) fair value measurement, respectively.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 31

According to the Dollar Rent A Car franchise agreement, what happens if a franchisee breaches the agreement or any other agreement with Dollar Rent A Car or its affiliates?

Accepted Answer

a 23219 (804) 786-2042 |
| MICHIGAN Department of Attorney General Franchise Section 525 W. Ottawa Street P.O. Box 30213 Lansing, Michigan 48909 (517) 335-7571 | WASHINGTON Department of Financial Institutions Division of Securities 150 Israel Road SW Tumwater, Washington 98501 (360) 902-8760 |
![](_page_184_Picture_0.jpeg)

# **ATTACHMENT G TO FRANCHISE AGREEMENT FORM OF PERSONAL GUARANTY AGREEMENT**

FOR VALUE RECEIVED, and in consideration of any financial accommodation at any time made or given to [FRANCHISEE] ("**Debtor**"), by [HERTZ SYSTEM, INC. / DOLLAR RENT A CAR, INC. / THRIFTY RENT-A-CAR SYSTEM, LLC] or an Affiliate (collectively referred to herein as "**Franchisor**"), and to induce Franchisor to enter into the Franchise Agreement dated [Date] (the "**Franchise Agreement**") between Debtor and Franchisor, the undersigned, whether one or more, as a primary obligor hereby, jointly and severally, guarantees Debtor's full and prompt payment and performance when due of all of the following of Debtor's liabilities (collectively the "**Indebtedness**"): (i) all of Debtor's obligations and liabilities, now existing or later arising, of every kind and nature under the Franchise Agreement and any other present or future agreements between Debtor or its Affiliates and Franchisor and all of thei

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 32

According to the Dollar Rent A Car franchise agreement, under what condition would the arbitration clause not apply to a dispute?

Accepted Answer

Notwithstanding the foregoing or anything to the contrary in this Section, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 30.3, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute shall be resolved in a judicial proceeding in accordance with this Section 30 (excluding this Section 30.3).

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 33

According to the notes, what could cause Dollar Rent A Car to record goodwill and indefinite-lived intangible asset impairment charges?

Accepted Answer

Further deterioration in the Company's cash flows or the weighted average cost of capital assumptions may result in an impairment charge to earnings in future quarters. The Company will continue to closely monitor actual results versus its expectations and the resulting impact to its assumptions about future estimated cash flows and the weighted average cost of capital. If the Company's expectations of the operating results, both in magnitude or timing, do not materialize, or if its weighted average cost of capital increases, the Company may be required to record goodwill and indefinite-lived intangible asset impairment charges, which could be material.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 34

Can Dollar Rent A Car allocate a portion of the Franchise Fee to Program Assessments?

Accepted Answer

We reserve the right to allocate a portion of the Franchise Fee to assessments related to Programs.

If all other Dollar franchisees are required to participate in, support and service a Program, then the expenses incurred by you will be on the same basis as other Dollar franchisees.

Source: Item 6 — OTHER FEES (FDD pages 39–46)

Question 35

By approximately how much are Dollar Rent A Car's unrecognized tax benefits reasonably possibly expected to decrease within 12 months of the reporting date, and what is the condition for this decrease?

Accepted Answer

|                                                                                    | Years Ended December 31, |      |      |       |    |      |  |  |  |
|------------------------------------------------------------------------------------|--------------------------|------|------|-------|----|------|--|--|--|
| (In millions)                                                                      |                          | 2024 | 2023 |       |    | 2022 |  |  |  |
| Balance as of January 1                                                            | \$                       | 130  | \$   | 298   | \$ | 106  |  |  |  |
| Increase (decrease) attributable to tax positions taken during prior |  | — |  | (192) |  | 184 |  |  |  |
| periods |  |  |  |  |  |  |  |  |  |
| Increase (decrease) attributable to tax positions taken during the |  | 29 |  | 24 |  | 9 |  |  |  |
| current year |  |  |  |  |  |  |  |  |  |
| Decrease attributable to settlements with taxing authorities                       |                          | (3)  |      | —     |    | (1)  |  |  |  |
| Balance as of December 31                                                          | \$                       | 156  | \$   | 130   | \$ | 298  |  |  |  |

The total amount of unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate is \$4 million. Net, after-tax interest and penalties related to tax liabilities are classified as a component

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 36

Is Dollar Rent A Car authorized to supplement the information provided in Item 19 with information about possible performance at a particular location?

Accepted Answer

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.

We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Robert M. Barton, Senior Vice President, Global Franchise Operations, The Hertz Corporation, at 8501 Williams Road, Estero, Florida 33928, Robert.Barton@hertz.com, (239) 301-**7**718 the Federal Trade Commission, and the appropriate state regulatory agencies.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–86)

Question 37

Is Dollar Rent A Car authorized to supplement the information provided in Item 19 with information about possible performance under particular circumstances?

Accepted Answer

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.

We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Robert M. Barton, Senior Vice President, Global Franchise Operations, The Hertz Corporation, at 8501 Williams Road, Estero, Florida 33928, Robert.Barton@hertz.com, (239) 301-**7**718 the Federal Trade Commission, and the appropriate state regulatory agencies.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–86)

Question 38

Besides the official Dollar Rent A Car website, under what conditions can a Dollar Rent A Car franchisee advertise their franchised business on another website?

Accepted Answer

Franchisee is prohibited from and shall not use the Hertz trademark and other proprietary marks (the "**Hertz Marks**"), the Dollar trademark and other proprietary marks (the "**Dollar Marks**") and the Thrifty trademark and other proprietary marks (the "**Thrifty Marks**") together, or in any combination, at any time in any form of advertising, promotion or marketing activities in any medium or in any paper or electronic directories, except as specifically authorized in the applicable Operations Guides, or otherwise in writing by Hertz, Dollar and Thrifty.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 39

May Dollar Rent A Car charge a fee if a Dollar Rent A Car franchisee's request for consultation exceeds what is customarily provided?

Accepted Answer

- 2. We will, upon your reasonable request, furnish guidance, make recommendations and generally give you the benefit of our knowledge and experience in establishing, managing and operating Your Franchised Businesses. To the extent that such request for consultation exceeds that customarily provided by us to franchisees in general, we may charge a reasonable fee. (Franchise Agreement, Section 13.1.)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 61–69)

Question 40

Can commissions be payable to two different travel industry members on the same Dollar Rent A Car transaction?

Accepted Answer

We may implement programs for set periods of time which may include a bonus to a travel industry member who attains a set level of cumulative regular commissions (including commissions paid on travel vouchers issued by us).

Commissions may also be payable to two different travel industry members on the same transaction, for example, if a travel agent were to place a reservation for an airline ticket and a rental car with an airline and then the airline were to place the car reservation with our Reservations System, both the airline and travel agent would receive a commission.

Source: Item 6 — OTHER FEES (FDD pages 39–46)

Question 41

Is compliance with agreements between a Dollar Rent A Car franchisee's affiliates and the franchisor's affiliates a condition for renewal?

Accepted Answer

| Provision                           | Section in Franchise Agreement | Summary                                                                                                                                         |
|-------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or                       | 7.1                                  | The Franchise Agreement may be renewed, provided (i) you are not                                                                                |
| extension of the                    |                                      | then in default of any provision of your Franchise Agreement, any                                                                               |
| term |  | amendment thereof or successor thereto, or any other agreement |
|  |  | between you or your affiliates and us or our affiliates, (ii) have not |
|                                     |                                      | failed at any time to make any payment owed to us or our affiliates in                                                                          |
|                                     |                                      | a timely manner and (iii) have at all times been in compliance or                                                                               |
|                                     |                                      | material compliance with all the terms and conditions of the Franchise                                                                          |
|                                     |                                      | Agreement and all such other agreements during the terms thereof,

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)

Question 42

What conditions must be met for the transfer of a Dollar Rent A Car franchise to be completed within 90 days of the franchisee's death?

Accepted Answer

of Ours or Our Affiliates. Our right of first refusal described in this Section 22 shall in no way modify or diminish Our right to withhold Our consent to the Transfer under Section 21.4. We may assign Our right of first refusal in this Section 22 to Affiliates or third parties.

# **23. DEATH, DISABILITY OR DISSOLUTION**

- 23.1. *Transfer Caused by Death*. Upon Your death or the death of any Owner, this Agreement and the franchise granted hereunder shall terminate unless We approve in writing a successor to such interest within ninety (90) days of such death.
  - (a) Notice of Transfer to Proposed Successor. Within thirty (30) days of death, the executor, trustee or administrator shall provide Us with a Notice of Transfer and all supporting documentation to be submitted in accordance with Section 21.3. The Notice of Transfer shall set forth the date of Your or an Owner's death and the name of the proposed successor ("**Designated Successor**"), which includes but is not limited to, an heir, legatee or third-party purchaser.
  - (b) Transfer Provisions. The provisions of Sections 21 and 22 shall govern the Transfer to any Designated Successor in the Notice of Transfer. In the event that We exercise Our right of first refusal in circumstances where no third-party offer has been made, We and the Designated Successor shall each select an independent appraiser, experienced in business valuations, to appraise the value of Your Franchised Business. Each party shall bear the costs of the appraiser selected by it. The two appraisers shall arrive at an agreed value for Your Franchised Business or, absent such agreement, the value shall be deemed to be the average of the two appraisals. Each and every obligation or condition upon a Transfer must be completed to Our satisfaction. In the event a probate, administration or other judicial proceeding is being conducted following a death, We may require a court order approving the Transfer to the Designated Successor.
  - (c) Post-Death Operations. Following Your or any Owner's death, Your Franchised Business must be operated in accordance with this Agreement and the Operations Guide. Any failure to do so shall constitute a breach of this Agreement and be grounds for termination.

![](_page_159_Picture_0.jpeg)

- (d) No Transfer Fee Payable by Family Member. No transfer fee will be payable in accordance with Section 21.6 by a Designated Successor who is a spouse, child, sibling or parent of You or any Owner.
- (e) Pre-death Designated Successor.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 43

To what is the consent to jurisdiction and venue subject according to the Dollar Rent A Car franchise agreement?

Accepted Answer

In recognition of the requirements of the North Dakota Franchise Investment Law, N.D. Cent. Code, §§ 51-19-01 through 51-19-17, and the policies of the office of the State of North Dakota Securities Commission, the Franchise Disclosure Document for DOLLAR RENT A CAR, INC. shall be amended by the addition of the following language:

- 1. The North Dakota Securities Commissioner has held the following to be unfair, unjust, or inequitable to North Dakota franchisees (Section 51-19-09, N.D.C.C.):
  - C. Restriction on Forum: Requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota.
- 3. Each provision of this Addendum to the Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the North Dakota Franchise Investment Law, N.D. Cent. Code, §§ 51-19-1 through 51-19-17, are met independently without reference to this Addendum to the Disclosure Document.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 44

For Dollar Rent A Car, what is the consequence of failing to achieve 80% of the Revenue Target in any two consecutive years?

Accepted Answer

ed by You or your Affiliate to Us and Our Affiliate(s). You may not deduct, set off, holdback or otherwise reduce in any manner any amount that You allege that We or Our Affiliates owe against any amounts owed by You under this Agreement.

# **6. REVENUE TARGET**

- 6.1. *Generally*. You shall maintain and increase the Gross Receipts of Your Franchised Business and not to do anything that would reduce the Gross Receipts of Your Franchised Business.
- 6.2. *Annual Calculations.* You shall ensure that Your Franchised Business achieves Gross Receipts equivalent to the applicable Revenue Target, in the amount set forth in Attachment A. In the event a Revenue Target has not been agreed for any particular year prior to the Effective Date, the parties shall discuss and agree a new Revenue Target at least five (5) months before the start of the relevant year. If the parties fail to agree on a Revenue Target for the affected year for any reason, by three (3) months the start of the relevant year, the Revenue Target shall be the previous Year's actual Gross Receipts or Minimum Annual Fee plus ten percent (10%), whichever is the greater.
- 6.3. *Requirement to pay Minimum Annual Fee.* Regardless of whether You achieve the Revenue Target in any one year You shall pay to Us the Minimum Annual Fee.
- 6.4.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 45

What constitutes 'full compliance' according to the Dollar Rent A Car Franchise Agreement, in the context of lifetime transfers?

Accepted Answer

siness as we may reasonably require and must otherwise modernize                                                                              |
|                                     |                                      | Your Franchised Business to reflect the then-current standards and                                                                              |

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| Provision                                  | Franchise               | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | Agreement | image of the Franchised System as specified in the Operations Guide; (g) you shall have achieved during the term of the Franchise Agreement the performance requirements set forth and described in Attachment B hereto (and, with respect to any applicable renewal periods, such performance requirements as may be designated by us with respect thereto);

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)

Question 46

Does Dollar Rent A Car currently charge new franchisees any Program Assessments?

Accepted Answer

We are currently not charging any Program Assessments to new franchisees, although we reserve the right to do so in the future.

Source: Item 6 — OTHER FEES (FDD pages 39–46)

Question 47

Does Dollar Rent A Car have the discretion to make vehicle purchase programs available to franchisees?

Accepted Answer

- 13.9. *Purchase Programs*.

We shall, at Our sole discretion, make available to You, upon such price, terms and conditions as We may determine, and to the extent permitted by law, such facilities as We may from time to time develop for Your Franchised Business, including for the purchase by You of vehicles through manufacturer purchase programs, and for the purchase of various materials such as lubricating oils and greases, tires, parts and accessories, antifreeze and other automotive products.

- 13.10. *Delegation and Combined Performance of Obligations*.

We shall have the right to delegate Our performance of any obligation hereunder (including the provision of any service and the operation of any program) to an Affiliate or Our Delegate.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 48

What drove the change in tax provision for Hertz Global and Hertz related to Dollar Rent A Car in 2023 compared to 2022?

Accepted Answer

The change in tax provision in 2023 compared to 2022 is driven by lower pre-tax income in 2023, benefits from EV credits generated in 2023, the release of valuation allowances in 2023 primarily related to the characterization of the loss on the restructuring of European operations (as disclosed below) and the non-taxable change in the fair value of Public Warrants.

|                                                              | 2024 | 2023                     | 2022 |
|--------------------------------------------------------------|------|--------------------------|------|
| Effective tax rate - Hertz Global                            | 12   | (115)                    | 16   |
| Effective tax rate - Hertz                                   | 11 % | (268) %                  | 22 % |

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 49

What drove the change in tax provision for Hertz Global and Hertz related to Dollar Rent A Car in 2024 compared to 2023?

Accepted Answer

The change in tax provision in 2024 compared to 2023 is driven by lower pretax income, increases in valuation allowances in 2024 and lower EV credits generated in 2024.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 50

For Dollar Rent A Car, how does the execution of an amendment to the Acquisition Agreement after the Notice Effective Date affect the Notice Effective Date?

Accepted Answer

all request, including additional business, financial or tax return information regarding the proposed transfer, the transferee, You, or Your Franchised Business.

All applicable information above shall also be provided with respect to each principal of the corporation and/or each partner, owner, manager or member. The Notice of Transfer shall be effective on the date We shall have actually received, to Our satisfaction, any and all of the materials and information set forth in this Section 21.3 including any additional information and documents subsequently requested by Us hereunder (the "**Notice Effective Date**"). Any amendment, addendum or other modification to the Acquisition Agreement executed after the Notice Effective Date, or any additional exhibit, schedule, agreement, document or other instrument attached or to be attached to the Acquisition Agreement, delivered to Us after the Notice Effective Date, shall automatically extend and modify the Notice Effective Date to the date upon which We receive the amendment, addendum or other modification, or any additional schedule, agreement, document or other instrument. We will have sixty (60) days beginning on the first (1st) business day following the Notice Effective Date, as it may be automatically extended and modified, to approve or disapprove the proposed Transfer discussed below in Section 21.4, and to exercise Our right of first refusal as provided in Section 22;

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 51

Does the Dollar Rent A Car franchise agreement subject the agreement to any franchise or similar law, rule, or regulation?

Accepted Answer

es to consent to liquidated damages or termination penalties.
  - E. Applicable Laws: Franchise agreements which specify that any claims arising under the North Dakota franchise law will be governed by the laws of a state other than North Dakota.
  - F. Waiver of Trial by Jury: Requiring North Dakota franchisees to consent to the waiver of a trial by jury.
  - G. Waiver of Exemplary and Punitive Damages: Requiring North Dakota franchisees to consent to a waiver of exemplary and punitive damages.
  - H. General Release: Requiring North Dakota franchisees to execute a general release of claims as a condition of renewal or transfer of a franchise.
  - 2. The following paragraph is added to the end of Item 17 of the Franchise Disclosure Document:

No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.

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3. Each provision of this Addendum to the Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the North Dakota Franchise Investment Law, N.D. Cent.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 52

Must a Dollar Rent A Car franchisee be in compliance with all terms and conditions of other agreements with the franchisor to be eligible for renewal?

Accepted Answer

related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**

#### **THE FRANCHISE RELATIONSHIP**

#### **FRANCHISE AGREEMENT**

| Provision                           | Section in Franchise Agreement | Summary                                                                                                                                         |
|-------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the                    | 2.2                                  | The term of each franchise given in the Franchise Agreement shall                                                                               |
| franchise term                      |                                      | begin on the Effective Date and end on the expiration date set forth in                                                                         |
|                                     |                                      | Attachment A thereto.                                                                                                                           |
| b. Renewal or                       | 7.1                                  | The Franchise Agreement may be renewed, provided (i) you are not                                                                                |
| extension of the                    |                                      | then in default of any provision of your Franchise Agreement, any                                                                               |
| term |  | amendment thereof or successor thereto, or any other agreement |
|  |  | between you or your affiliates and us or our affiliates, (ii) have not |
|                                     |                                      | failed at any time to make any payment owed to us or our affiliates in                                                                          |
|                                     |                                      | a timely manner and (iii) have at all times been in compliance or                                                                               |
|                                     |                                      | material compliance with all the terms and conditions of the Franchise                                                                          |
|                                     |                                      | Agreement and all such other agreements during the terms thereof,                                                                               |
|                                     |                                      | you may, at your option, renew the franchise granted to you under the                                                                           |
|                                     |                                      | Franchise Agreement for such number of successive renewal periods                                                                               |
|                                     |                                      | ("Renewal Periods"), if any, set forth in Attachment A to your                                                                                  |
|                                     |                                      | Franchise Agreement, provided that in advance of each such renewal,                                                                             |
|                                     |                                      | you execute a new franchise agreement and pay a renewal fee in the                                                                              |
|                                     | 7.1                                  | amount set forth in Attachment A to the Franchise Agreement.                                                                                    |
| c. Requirements |  | In addition to the requirements set forth in "b." above the following |
| for you to renew |  | conditions must also be met before and at the time of each renewal: |
| or extend                           |                                      | (a) you have given us written notice of your election to renew not more                                                                         |
|                                     |                                      | than 12 months nor less than 9 months prior to the end of the term                                                                              |
|                                     |                                      | (and, as applicable, the end of the Renewal Periods); (b) you have paid                                                                         |
|                                     |                                      | all amounts owed to us on or before the dates on which they are due;                                                                            |
|                                     |                                      | (c) you have complied with our then-current qualification and training                                                                          |
|                                     |                                      | requirements; (d) you have paid our out-of-pocket costs relating to                                                                             |
|                                     |                                      | your application for a renewal franchise; (e) you and your owners must                                                                          |
|                                     |                                      | execute a general release, in a form then prescribed by us, of any and                                                                          |
|                                     |                                      | all claims against us, our Parent and affiliates and their respective                                                                           |
|                                     |                                      | officers, directors, members, shareholders, and employees, in their                                                                             |
|                                     |                                      | corporate and individual capacities, including claims arising under the                                                                         |
|                                     |                                      | Franchise Agreement or under federal, state or local laws, rules,                                                                               |
|  |  | regulations or orders;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)

Question 53

Is a Dollar Rent A Car franchisee eligible for renewal if they are in default of any provision of their Franchise Agreement?

Accepted Answer

| Provision                           | Section in Franchise Agreement | Summary                                                                                                                                         |
|-------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or                       | 7.1                                  | The Franchise Agreement may be renewed, provided (i) you are not                                                                                |
| extension of the                    |                                      | then in default of any provision of your Franchise Agreement, any                                                                               |
| term |  | amendment thereof or successor thereto, or any other agreement |
|  |  | between you or your affiliates and us or our affiliates, (ii) have not |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)

Question 54

Does the Dollar Rent A Car franchisee have the option to renew the franchise?

Accepted Answer

related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**

#### **THE FRANCHISE RELATIONSHIP**

#### **FRANCHISE AGREEMENT**

| Provision                           | Section in Franchise Agreement | Summary                                                                                                                                         |
|-------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the                    | 2.2                                  | The term of each franchise given in the Franchise Agreement shall                                                                               |
| franchise term                      |                                      | begin on the Effective Date and end on the expiration date set forth in                                                                         |
|                                     |                                      | Attachment A thereto.                                                                                                                           |
| b. Renewal or                       | 7.1                                  | The Franchise Agreement may be renewed, provided (i) you are not                                                                                |
| extension of the                    |                                      | then in default of any provision of your Franchise Agreement, any                                                                               |
| term |  | amendment thereof or successor thereto, or any other agreement |
|  |  | between you or your affiliates and us or our affiliates, (ii) have not |
|                                     |                                      | failed at any time to make any payment owed to us or our affiliates in                                                                          |
|                                     |                                      | a timely manner and (iii) have at all times been in compliance or                                                                               |
|                                     |                                      | material compliance with all the terms and conditions of the Franchise                                                                          |
|                                     |                                      | Agreement and all such other agreements during the terms thereof,                                                                               |
|                                     |                                      | you may, at your option, renew the franchise granted to you under the                                                                           |
|                                     |                                      | Franchise Agreement for such number of successive renewal periods                                                                               |
|                                     |                                      | ("Renewal Periods"), if any, set forth in Attachment A to your                                                                                  |
|                                     |                                      | Franchise Agreement, provided that in advance of each such renewal,                                                                             |
|                                     |                                      | you execute a new franchise agreement and pay a renewal fee in the                                                                              |
|                                     | 7.1                                  | amount set forth in Attachment A to the Franchise Agreement.                                                                                    |
| c. Requirements |  | In addition to the requirements set forth in "b." above the following |
| for you to renew |  | conditions must also be met before and at the time of each renewal: |
| or extend                           |                                      | (a) you have given us written notice of your election to renew not more                                                                         |
|                                     |                                      | than 12 months nor less than 9 months prior to the end of the term                                                                              |
|                                     |                                      | (and, as applicable, the end of the Renewal Periods); (b) you have paid                                                                         |
|                                     |                                      | all amounts owed to us on or before the dates on which they are due;                                                                            |
|                                     |                                      | (c) you have complied with our then-current qualification and training                                                                          |
|                                     |                                      | requirements; (d) you have paid our out-of-pocket costs relating to                                                                             |
|                                     |                                      | your application for a renewal franchise; (e) you and your owners must                                                                          |
|                                     |                                      | execute a general release, in a form then prescribed by us, of any and                                                                          |
|                                     |                                      | all claims against us, our Parent and affiliates and their respective                                                                           |
|                                     |                                      | officers, directors, members, shareholders, and employees, in their                                                                             |
|                                     |                                      | corporate and individual capacities, including claims arising under the                                                                         |
|                                     |                                      | Franchise Agreement or under federal, state or local laws, rules,                                                                               |
|  |  | regulations or orders;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)

Question 55

Can a Dollar Rent A Car franchisee renew their agreement if they have failed to make timely payments to the franchisor or its affiliates?

Accepted Answer

related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**

#### **THE FRANCHISE RELATIONSHIP**

#### **FRANCHISE AGREEMENT**

| Provision                           | Section in Franchise Agreement | Summary                                                                                                                                         |
|-------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the                    | 2.2                                  | The term of each franchise given in the Franchise Agreement shall                                                                               |
| franchise term                      |                                      | begin on the Effective Date and end on the expiration date set forth in                                                                         |
|                                     |                                      | Attachment A thereto.                                                                                                                           |
| b. Renewal or                       | 7.1                                  | The Franchise Agreement may be renewed, provided (i) you are not                                                                                |
| extension of the                    |                                      | then in default of any provision of your Franchise Agreement, any                                                                               |
| term |  | amendment thereof or successor thereto, or any other agreement |
|  |  | between you or your affiliates and us or our affiliates, (ii) have not |
|                                     |                                      | failed at any time to make any payment owed to us or our affiliates in                                                                          |
|                                     |                                      | a timely manner and (iii) have at all times been in compliance or                                                                               |
|                                     |                                      | material compliance with all the terms and conditions of the Franchise                                                                          |
|                                     |                                      | Agreement and all such other agreements during the terms thereof,                                                                               |
|                                     |                                      | you may, at your option, renew the franchise granted to you under the                                                                           |
|                                     |                                      | Franchise Agreement for such number of successive renewal periods                                                                               |
|                                     |                                      | ("Renewal Periods"), if any, set forth in Attachment A to your                                                                                  |
|                                     |                                      | Franchise Agreement, provided that in advance of each such renewal,                                                                             |
|                                     |                                      | you execute a new franchise agreement and pay a renewal fee in the                                                                              |
|                                     | 7.1                                  | amount set forth in Attachment A to the Franchise Agreement.                                                                                    |
| c. Requirements |  | In addition to the requirements set forth in "b." above the following |
| for you to renew |  | conditions must also be met before and at the time of each renewal: |
| or extend                           |                                      | (a) you have given us written notice of your election to renew not more                                                                         |
|                                     |                                      | than 12 months nor less than 9 months prior to the end of the term                                                                              |
|                                     |                                      | (and, as applicable, the end of the Renewal Periods); (b) you have paid                                                                         |
|                                     |                                      | all amounts owed to us on or before the dates on which they are due;                                                                            |
|                                     |                                      | (c) you have complied with our then-current qualification and training                                                                          |
|                                     |                                      | requirements; (d) you have paid our out-of-pocket costs relating to                                                                             |
|                                     |                                      | your application for a renewal franchise; (e) you and your owners must                                                                          |
|                                     |                                      | execute a general release, in a form then prescribed by us, of any and                                                                          |
|                                     |                                      | all claims against us, our Parent and affiliates and their respective                                                                           |
|                                     |                                      | officers, directors, members, shareholders, and employees, in their                                                                             |
|                                     |                                      | corporate and individual capacities, including claims arising under the                                                                         |
|                                     |                                      | Franchise Agreement or under federal, state or local laws, rules,                                                                               |
|  |  | regulations or orders;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)

Question 56

Is a Dollar Rent A Car franchisee required to install systems to monitor vehicle telematics, geolocation, and/or other information in every vehicle?

Accepted Answer

Your "**Computer System**" will consist of such computer system hardware, software, required dedicated telephone and power lines, modems, printer(s), other computer-related accessories or peripheral equipment, and systems and devices to monitor vehicle telematics, geolocation, and/or other information (which you may be required to install in every Vehicle utilized in Your Franchised Business), in each case as we specify in the Operations Guide or otherwise in writing. Your Computer System shall have the capacity to electronically exchange information, messages, and other data with other computers, by such means (including but not limited to the Internet), and using such protocols (e.g., TCP/IP), as we may reasonably prescribe in the Operations Guide or otherwise in writing. Your Computer System must be able to interface with our data transfer and acquisition systems via a dedicated telephone line modem or dedicated network connection, if we require it.

Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 46–52)

Question 57

Is a Dollar Rent A Car franchisee required to participate in Program Assessments even if not all other franchisees are required to?

Accepted Answer

We may decide to initiate a Program Assessment related to any Program. Such Programs could relate, for example, to advertising, sales promotion, marketing, reservations, centralized billing, direct billing, charge and credit cards, debit cards, cash deposit ID cards, cards issued by us or our affiliates, travel industry commissions or tour arrangements, customer satisfaction, operations, account programs, coupon programs, experimental or test programs. The Programs may include participation by Vehicle Rental Businesses owned, operated, franchised, or licensed by our affiliate(s) which are identified by trademarks, trade names, service marks, logos, emblems, and other indicia and origin different and distinct from the Marks, including Vehicle Rental Businesses that may compete with Your Franchised Business. You agree to fully and completely participate in such Programs, as required by us, regardless of whether all other franchisees are also required to participate in, support and service the Programs. If all other franchisees are also required to participate in, support and service a Program, then the expenses incurred by you will be on the same basis as other franchisees. Programs may be modified, replaced, or initiated by us from time to time as in the Operations Guide or otherwise in writing.

We are currently not charging any Program Assessment to new franchisees, although we reserve the right to do so in the future. We reserve the right to allocate a portion of the franchise fees to assessments related to Programs. Program Assessments are not refundable.

Program Assessments may, for example, be used by us to defray our operating expenses and overhead reasonably related to the administration, direction or operation of such Programs. We will from time to time determine and inform you of the amount of such assessments, and the time and manner of payment for such purposes (for example, pro rata basis determinations) and for such periods as we determine.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 61–69)

Question 58

Does the Dollar Rent A Car franchisee's obligation to indemnify the franchisor continue after the termination or expiration of the Franchise Agreement, and if so, under what conditions?

Accepted Answer

This indemnification obligation shall continue after the termination or expiration of this Agreement with respect to all aspects of Your Franchised Business arising prior thereto.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 59

What happens if a Dollar Rent A Car franchisee does not maintain sufficient vehicle financing capacity?

Accepted Answer

- (p) Your vehicle financing capacity, liquidity and/or net worth materially decrease to the extent that We deem (in Our discretion) there to be an adverse impact on your continued financial stability or operations; or

We have the further right to terminate this Agreement with respect to all Franchised Territory or (in Our discretion) as to any Sub-Territory We deem (in Our discretion) affected by the breach effective upon expiration of the cure period if:

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 60

What happens if the Dollar Rent A Car Franchisor is unable to obtain a protective order regarding the disclosure of Confidential Information?

Accepted Answer

In the event that Recipient becomes legally compelled to disclose any Confidential Information, Recipient shall provide the Franchisor with prompt notice so that the Franchisor may seek a protective order or other appropriate remedy, or both, or waive compliance with the provisions of this Agreement.

In the event that the Franchisor is unable to obtain a protective order or other appropriate remedy, or if it so directs Recipient, Recipient shall furnish only that portion of the Confidential Information that Recipient is advised by written opinion of its counsel is legally required to be furnished and shall exercise its reasonable best efforts to obtain reliable assurance that confidential treatment shall be accorded such Confidential Information.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 61

What happens if the proposed transferee for a Dollar Rent A Car franchise is an existing franchisee?

Accepted Answer

- (f) In the event the proposed Transfer would result in the proposed transferee owning and operating more than one Vehicle Rental Business pursuant to franchise agreements with Us or Our Affiliates (either because the proposed Transfer involves multiple Franchised Businesses or because the proposed transferee is an existing franchisee pursuant to a franchise agreement with Us or Our Affiliates), We determine, in Our sole discretion, that We will allow for the ownership and operation of multiple Vehicle Rental Businesses by the proposed transferee;

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 62

For Dollar Rent A Car, what happens if a Revenue Target hasn't been agreed upon before the start of a particular year?

Accepted Answer

- 6.2. *Annual Calculations.* You shall ensure that Your Franchised Business achieves Gross Receipts equivalent to the applicable Revenue Target, in the amount set forth in Attachment A. In the event a Revenue Target has not been agreed for any particular year prior to the Effective Date, the parties shall discuss and agree a new Revenue Target at least five (5) months before the start of the relevant year. If the parties fail to agree on a Revenue Target for the affected year for any reason, by three (3) months the start of the relevant year, the Revenue Target shall be the previous Year's actual Gross Receipts or Minimum Annual Fee plus ten percent (10%), whichever is the greater.
- 6.3. *Requirement to pay Minimum Annual Fee.* Regardless of whether You achieve the Revenue Target in any one year You shall pay to Us the Minimum Annual Fee.
- 6.4. *Failure to meet Revenue Target.* Notwithstanding Section 6.2, if You fail to achieve eighty percent (80%) of the Revenue Target in any two (2) consecutive years We shall, at Our complete

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discretion have the option to terminate this Agreement. We shall give notice to You of Our decision to terminate this Agreement in writing with a notice period of six (6) months.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 63

What happens if the terms of a Dollar Rent A Car franchise transfer change or the transfer doesn't occur within 30 days of written approval?

Accepted Answer

- (k) The Transfer to the proposed transferee must occur within a period of thirty (30) days from the date of Our written approval of the proposed Transfer upon the terms and conditions specified in the Notice of Transfer. If, however, such terms shall be changed, or if such thirty (30) day period shall have expired, We shall again have the opportunity to exercise its right of first refusal as provided in Section 22 and the proposed Transfer shall again be subject to all procedures specified in this Section 21, including a new Notice of Transfer.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

Question 64

What happens to the reservation charge if a prospective customer cancels their Dollar Rent A Car reservation?

Accepted Answer

ons fees timely. These procedures are described in our Operations Guide and may be revised or revoked by us at any time. If a reservation is canceled by a prospective customer, the reservation charge is not made. If the prospective customer does not rent the car, and does not cancel the reservation (*i.e.*, is a "no show"), the reservation charge will still be made.
- 5.

Source: Item 6 — OTHER FEES (FDD pages 39–46)

Dollar_Rent_A_Car 2025 FDD FAQ