What action must Dollar Rent A Car take to terminate the agreement for a breach?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car FDD, in cases of specific defaults related to the use of Hertz, Dollar, and Thrifty marks, Dollar Rent A Car must provide written notice to the franchisee. The franchisee then has a 20-day period to correct the issue to the satisfaction of Hertz, Dollar, and Thrifty. If the franchisee fails to cure the default within this timeframe, the franchise agreement will be automatically terminated.
This stipulation applies to situations where the franchisee uses the Hertz, Dollar, or Thrifty marks together or in combination, violating the franchise agreements, operations guide, or addendum. It also covers unauthorized transfers, sales, or dispositions of franchise agreements and any failure to comply with any provision of the addendum.
This means that for these specific types of violations, Dollar Rent A Car does not have discretionary power over the termination if the franchisee fails to rectify the breach within the given timeframe. The termination is automatic upon written notice if the cure is not satisfactory within 20 days. This clause provides a clear and defined process for handling specific defaults, ensuring consistency and potentially expediting the termination process in comparison to scenarios where the franchisor might have more discretion or a longer cure period.