Does the Dollar Rent A Car agreement explicitly mention non-competition?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
NON-COMPETITION
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- In-Term Non-Compete. During the term of this Agreement, Owner shall not, directly or indirectly, for Owner's own or others' benefit, alone, or in conjunction with any other person or entity: (1) own, engage in, be employed by, advise, assist, lease or sublease to, invest in, franchise, lend money to, agree to sell or sell all or substantially all of Owner's interest in the assets of the [Hertz / Dollar / Thrifty] Business, or have any interest in, whether financial or otherwise, any other Vehicle Rental Business, except under license from Franchisor or its affiliates, or (2) divert or attempt to divert any actual or prospective business or customer of the [Hertz / Dollar / Thrifty] Business, or of any other [Hertz / Dollar / Thrifty] Business, to any competitor, by direct or indirect inducement or otherwise.
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- Post-Term Non-Compete. For a period of twelve (12) months after (i) a Transfer permitted by Section 21 of the Franchise Agreement, or (ii) the date of termination or expiration of the Franchise Agreement for any reason (including, without limitation, due to nonrenewal) or the date on which Owner ceases to be an Owner in Franchisee, whichever is later, Owner shall not directly or indirectly, for Owner or for any other person or entity, alone or through or on behalf of others:
Own, engage in, be employed by, advise, assist, lease or sublease to, invest in, franchise, lend money to, agree to sell or sell all or substantially all of Owner's interest in the assets of the [Hertz / Dollar / Thrifty] Business to, or have any other interest in, whether financial or otherwise, any Vehicle Rental Business, except under license from Franchisor or its affiliates:
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, the franchise agreement includes both in-term and post-term non-compete clauses for owners.
During the term of the agreement, the owner is prohibited from engaging in any Vehicle Rental Business, except under license from Dollar Rent A Car or its affiliates. This includes owning, operating, or investing in any competing business, as well as diverting or attempting to divert customers to a competitor.
Post-termination, for a period of twelve months after the transfer, termination, or expiration of the franchise agreement, the owner is restricted from involvement in any Vehicle Rental Business, with the same exceptions for Dollar Rent A Car-licensed or affiliated businesses. This restriction applies regardless of the reason for termination or the owner's disassociation from the franchisee. This ensures that owners cannot leverage their knowledge and experience gained during the franchise term to compete against Dollar Rent A Car immediately after leaving the system.