What is the basis for the Franchise Fee for a Dollar Rent A Car franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Fee is based upon Gross Receipts from Your Franchised Business. "Gross Receipts" means and includes the gross amount of all sums, whether such sums are cash or credit, billed or charged by you (whether or not the same shall have been paid or collected, and including for purposes of clarity amounts received in connection with prepaid reservations for which a rental does not actually occur) as time mileage or use charges, intercity charges or revenue splits or reimbursements, loss and collision damage waiver charges or fees, insurance charges such as personal effects coverage, personal accident insurance, supplemental liability insurance or uninsured or underinsured motorist protection (with no deduction for any premium paid to the insurance company in connection with any of the foregoing insurance products), vehicle licensing fees, prepaid fuel, charges for services such as cellular phones, GPS, wi-fi, tablets, baby seats, ski racks and other special equipment or any other products or services rented, leased or sold by Your Franchised Business, additional and/or underage driver charges, drop charges (oneway), parking fees, and transportation fees, and all other charges and fees and all other income of every kind and nature derived from Your Franchised Business or any business operated in violation of Section 12.18 of your Franchise Agreement; but shall not include the amount of any federal, state or municipal sales or other similar taxes separately stated and collected from customers and paid to government entities as a result of such collection, concession or consolidated facility fees or charges to the extent paid to a third party, any refueling service charges separately stated and due as a result of the vehicle being returned with less than the fuel required upon return by the rental agreement, any parking violation fees and administrative charges associated with the processing and collection of fines, impound fees, receipts from sales of used vehicles, nor any sums received as insurance or otherwise to reimburse you for damage to your vehicles or other property or to reimburse you for the loss, conversion or abandonment of such cars or the costs to return the vehicle to the designated location in rentable condition (but inclusive of proceeds of any business interruption insurance policies maintained by you), or any fees collected as a result of disposal of a vehicle no longer deemed to be rentable.
Source: Item 6 — OTHER FEES (FDD pages 39–46)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the franchise fee is based upon Gross Receipts from Your Franchised Business. Gross Receipts include all sums billed or charged by the franchisee, whether cash or credit, and whether or not they have been paid or collected. This includes time mileage or use charges, intercity charges or revenue splits or reimbursements, loss and collision damage waiver charges or fees, insurance charges, vehicle licensing fees, prepaid fuel, charges for services such as cellular phones, GPS, wi-fi, tablets, baby seats, ski racks and other special equipment or any other products or services rented, leased or sold by Your Franchised Business, additional and/or underage driver charges, drop charges (oneway), parking fees, and transportation fees, and all other charges and fees and all other income of every kind and nature derived from Your Franchised Business.
However, Gross Receipts do not include the amount of any federal, state or municipal sales or other similar taxes separately stated and collected from customers and paid to government entities as a result of such collection, concession or consolidated facility fees or charges to the extent paid to a third party, any refueling service charges separately stated and due as a result of the vehicle being returned with less than the fuel required upon return by the rental agreement, any parking violation fees and administrative charges associated with the processing and collection of fines, impound fees, receipts from sales of used vehicles, nor any sums received as insurance or otherwise to reimburse you for damage to your vehicles or other property or to reimburse you for the loss, conversion or abandonment of such cars or the costs to return the vehicle to the designated location in rentable condition (but inclusive of proceeds of any business interruption insurance policies maintained by you), or any fees collected as a result of disposal of a vehicle no longer deemed to be rentable.
Dollar Rent A Car franchisees need to be aware of exactly what constitutes "Gross Receipts" because this figure determines the franchise fee they must pay. Franchisees should ensure their accounting systems accurately track and report these receipts, while also properly excluding any items that are not included in the calculation. This is important for compliance and to avoid disputes with Dollar Rent A Car regarding fee payments. Understanding the components of Gross Receipts is essential for managing the financial aspects of the franchise effectively.