What action must a Dollar Rent A Car franchisee take to renew their franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | ||
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, a franchisee may renew their franchise agreement for the number of successive renewal periods, if any, outlined in Attachment A of their Franchise Agreement. To do so, the franchisee must execute a new franchise agreement and pay the renewal fee specified in Attachment A.
In order to be eligible for renewal, the Dollar Rent A Car franchisee must not be in default of any provision of their Franchise Agreement, any amendments, or any other agreements with Dollar Rent A Car or its affiliates. They must also have consistently made timely payments and have been in compliance or material compliance with all terms and conditions of the Franchise Agreement and related agreements throughout the term.
In addition to the above, the Dollar Rent A Car franchisee must provide written notice of their election to renew within a specific timeframe: not more than 12 months nor less than 9 months before the end of the current term. They must also have paid all outstanding amounts owed to Dollar Rent A Car by their due dates, met the then-current qualification and training requirements, and covered Dollar Rent A Car's out-of-pocket costs associated with the renewal.