For Dollar Rent A Car, what is the definition of the 'Notice Effective Date' in the context of a transfer?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
All applicable information above shall also be provided with respect to each principal of the corporation and/or each partner, owner, manager or member. The Notice of Transfer shall be effective on the date We shall have actually received, to Our satisfaction, any and all of the materials and information set forth in this Section 21.3 including any additional information and documents subsequently requested by Us hereunder (the "Notice Effective Date"). Any amendment, addendum or other modification to the Acquisition Agreement executed after the Notice Effective Date, or any additional exhibit, schedule, agreement, document or other instrument attached or to be attached to the Acquisition Agreement, delivered to Us after the Notice Effective Date, shall automatically extend and modify the Notice Effective Date to the date upon which We receive the amendment, addendum or other modification, or any additional schedule, agreement, document or other instrument. We will have sixty (60) days beginning on the first (1st) business day following the Notice Effective Date, as it may be automatically extended and modified, to approve or disapprove the proposed Transfer discussed below in Section 21.4, and to exercise Our right of first refusal as provided in Section 22; provided, however, that, subject to applicable law, We may elect to extend the sixty-day period for an additional thirty (30) days upon written notice to You prior to the expiration of the sixty-day period (the "Review Period").
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 Notice Effective Date is the date that Dollar Rent A Car receives all required materials and information related to a proposed transfer, and finds them satisfactory. This includes any additional information or documents that Dollar Rent A Car subsequently requests.
For a prospective Dollar Rent A Car franchisee, this means that the timeline for approving a transfer doesn't start until the franchisor has everything they need and are satisfied with it. Any missing or incomplete information will delay the start of the review period. Furthermore, if the franchisee amends the Acquisition Agreement after the Notice Effective Date, this will automatically extend and modify the Notice Effective Date to the date upon which Dollar Rent A Car receives the amendment.
Dollar Rent A Car then has sixty days, beginning on the first business day following the Notice Effective Date (as it may be extended), to approve or disapprove the proposed transfer, or to exercise their right of first refusal. Dollar Rent A Car can extend this review period by an additional thirty days with written notice to the franchisee before the initial sixty-day period expires.
This clause protects Dollar Rent A Car by ensuring they have adequate time and information to assess any proposed transfer of the franchise. A franchisee looking to sell their Dollar Rent A Car franchise should ensure they compile all required documentation accurately and promptly to avoid delays in the approval process.