For Dollar Rent A Car, what assumptions are included when reviewing breakage on a quarterly basis?

According to Dollar Rent A Car's 2025 Franchise Disclosure Document, breakage, which represents loyalty points not expected to be redeemed, is reviewed quarterly. This review incorporates significant assumptions. These assumptions include historical breakage trends and internal Company forecasts.

For a Dollar Rent A Car franchisee, understanding these assumptions is crucial because breakage directly impacts the company's financial reporting and revenue recognition. Accurate forecasting of breakage ensures that Dollar Rent A Car can reliably account for its loyalty program liabilities and avoid overstating revenue. This ultimately affects the financial stability and transparency of the franchise system.

By considering historical trends and internal forecasts, Dollar Rent A Car aims to create a realistic estimate of unredeemed loyalty points. This process aligns with standard accounting practices, ensuring that financial statements accurately reflect the company's financial position. Franchisees benefit from this accuracy, as it provides a clearer picture of the company's overall performance and financial health.