Does the Dollar Rent A Car arbitration agreement allow for class-wide arbitration proceedings?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
We and You agree that arbitration shall be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between Us and/or Our Affiliates (and their respective equity holders, officers, directors, agents, and/or employees) and You and/or Your affiliates (and their respective owners, officers, directors, agents, guarantors, and/or employees), if any, may not be consolidated with any other arbitration proceeding between Us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 30.3, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute shall be resolved in a judicial proceeding in accordance with this Section 30 (excluding this Section 30.3).
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 arbitration agreement specifies that arbitration will be conducted on an individual basis, explicitly prohibiting class-wide arbitration. This means that any disputes between Dollar Rent A Car and a franchisee must be handled individually and cannot be consolidated with other arbitration proceedings involving Dollar Rent A Car and other parties.
However, there is a condition attached to this clause. If a court or arbitrator determines that the prohibition of class-wide arbitration is unenforceable for a particular dispute, then the arbitration clause itself will not apply to that specific dispute. In such cases, the dispute would be resolved through judicial proceedings as outlined in the relevant section of the agreement, excluding the arbitration subsection.
This arrangement provides Dollar Rent A Car with a mechanism to avoid class action lawsuits through mandatory individual arbitration, but it also includes a safety valve. If the class-wide arbitration waiver is deemed unenforceable, the dispute reverts to the court system. This could be beneficial or detrimental to a franchisee depending on the specific circumstances and the legal precedents in their jurisdiction.