Who must approve the Airport Agreements before a Dollar Rent A Car franchisee executes them?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) At Our option, the Airport Agreements shall be approved by Us prior to Your execution of the Airport Agreements. In all cases, the Airport Agreements or any renewals or extensions thereof shall provide that Franchisor and/or its Affiliate is allowed to succeed to Your status under the Airport Agreements in the event You fail to cure a default or are terminated under the Airport Agreements, or You fail to cure a default or are terminated under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the franchisor has the option to require approval of Airport Agreements before the franchisee executes them. Specifically, Dollar Rent A Car may elect that the Airport Agreements be approved by them before a franchisee signs them.
This means that if Dollar Rent A Car chooses to exercise this option, a franchisee must submit the Airport Agreements to Dollar Rent A Car for their review and approval before finalizing the agreement with the airport authority. This ensures that the terms of the Airport Agreements align with Dollar Rent A Car's standards and protect their interests.
Furthermore, the FDD states that all Airport Agreements, including any renewals or extensions, must include a clause that allows Dollar Rent A Car or its affiliates to take over the franchisee's status under the Airport Agreements. This would occur if the franchisee fails to correct a default or is terminated under either the Airport Agreements or the Franchise Agreement. This provision protects Dollar Rent A Car's ability to maintain operations at the airport location even if the franchisee is no longer able to operate the business.