What costs can Dollar Rent A Car use the advertising funds to cover?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
If established, the funds may be used to meet any and all costs of maintaining, administering, directing and preparing sales promotion activities. We may use the sums you pay to the funds to defray any of our operating expenses and overhead reasonably related to the administration, direction or operation of the funds, programs, and activities.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 61–69)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, if advertising funds are established, Dollar Rent A Car can use these funds to cover the costs of maintaining, administering, directing, and preparing sales promotion activities. Dollar Rent A Car is also permitted to use these funds to defray their operating expenses and overhead that are reasonably related to the administration, direction, or operation of the funds, programs, and activities.
It is important to note that Dollar Rent A Car does not plan to use money from the fund for advertising that is principally a solicitation for the sale of franchises. Third parties may contribute to the fund based on agreements to feature their products or services in Dollar Rent A Car's advertising. However, the FDD states that Dollar Rent A Car's Parent does not plan to audit or prepare separate financial statements for the funds, so financial statements or an accounting of the funds would not be available for franchisee review.
For a prospective Dollar Rent A Car franchisee, this means that while advertising funds may be used to promote the brand and its services, there is limited transparency regarding how these funds are managed and spent. Franchisees should consider the implications of contributing to a fund without direct oversight or detailed financial reporting. It is also important to note that Dollar Rent A Car reserves the right to allocate franchise fees to cover advertising and sales promotion programs.