What constitutes a breach of the Dollar Rent A Car franchise agreement?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
The following shall constitute additional events of default, in addition to the events of default listed in the Franchise Agreements, and shall result in automatic termination of the Franchise Agreements upon written notice by Hertz, Dollar or Thrifty, unless otherwise specified: (i) any action, operation, business practice or business use whereby the Hertz Marks, the Dollar Marks or the Thrifty Marks are used in any manner together, or in any combination, in violation of the Franchise Agreements, the Operations Guide, and/or this Addendum, which is not cured to the satisfaction of Hertz, Dollar and Thrifty in their sole discretion within twenty (20) days of receipt of written notice; (ii) any advertising, marketing or promotion whereby the Hertz Marks, the Dollar Marks or the Thrifty Marks are used together, or in any combination, in violation of the Franchise Agreements, the Operations Guides, and/or this Addendum, which is not cured to the satisfaction of Hertz, Dollar and Thrifty in their sole discretion within twenty (20) days of receipt of written notice; (iii) any transfer, sale or other disposition of one or more of the Franchise Agreements without the express written consent of Hertz, Dollar and Thrifty; and (iv) any failure to comply with any provision of this Addendum, which is not cured to the satisfaction of Hertz, Dollar and Thrifty in their sole discretion within twenty (20) days of receipt of written notice.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, several actions can trigger a default and potential termination of the franchise agreement, especially when a franchisee also holds franchises with Hertz or Thrifty.
Specifically, if a Dollar Rent A Car franchisee also operates a Hertz or Thrifty franchise, using the Hertz, Dollar, or Thrifty marks together in any manner that violates the franchise agreements, operations guide, or the addendum constitutes a breach. This includes using the marks in combination in any action, operation, business practice or business use. Similarly, any advertising, marketing, or promotion that combines the Hertz, Dollar, or Thrifty marks in violation of the agreements also constitutes a breach. In both cases, Dollar Rent A Car, Hertz, and Thrifty must provide written notice, and the franchisee has 20 days to rectify the issue to their satisfaction.
Furthermore, transferring, selling, or otherwise disposing of one or more of the franchise agreements without the express written consent of Hertz, Dollar, and Thrifty will result in default. Any failure to comply with any provision of the addendum, if not resolved to the satisfaction of Hertz, Dollar, and Thrifty within 20 days of written notice, also constitutes a breach. These breaches can lead to automatic termination of the franchise agreements upon written notice by Hertz, Dollar, or Thrifty.