What was the amount of dividends paid to Hertz Holdings by Dollar Rent A Car in 2023?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
ate Holdings, LLC which wholly owns Hertz, Hertz Global's primary operating company.
These condensed parent company financial statements reflect the activity of Hertz Holdings as the parent company to Hertz and have been
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, in 2023, $321 million in cash dividends were paid by Hertz (the primary operating company) to Hertz Holdings. These dividends were used to fund common stock repurchases. There were no non-cash dividends paid in 2023.
For a prospective Dollar Rent A Car franchisee, this indicates the financial relationship between Hertz and its parent company, Hertz Holdings. The ability of Hertz to pay such a large dividend suggests strong financial performance at the operating level.
However, franchisees should be aware that these dividends represent a significant outflow of cash from Hertz, which could potentially impact investment in the Dollar Rent A Car brand, technology, or other areas that benefit franchisees. It is important to note that dividend policies can change, and past performance is not necessarily indicative of future results. A potential franchisee should consider the long-term financial strategy of Hertz and how it might affect the Dollar Rent A Car franchise system.