Can Dollar Rent A Car designate a single approved supplier for required purchases?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
pliers no longer meet our standards, or we determine that the item is no longer appropriate for Your Franchised Business. We reserve the right to designate a single supplier for any required purchase, and such supplier may be us or an affiliate.
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- You must pay us interest on any unpaid obligations. All unpaid obligations will bear interest from the date due until paid at the lesser of the interest rate prescribed by us in writing from time to time, in our sole discretion, or the maximum rate allowed by applicable law. You must also pay us a late fee of not less than 5% of the total amount overdue. If we incur costs and expenses due to your failure to pay amounts when due or to submit any reports, information, or supporting records, you must reimburse us for all of the costs and expenses that we incur, including reasonable accounting, attorneys', arbitrators' and related fees.
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- If you desire to purchase or lease from an unapproved supplier, you must submit a written request for authorization to purchase items, together with such samples and information as we may require.
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, they retain the right to designate a single approved supplier for any required purchases. This supplier could be Dollar Rent A Car itself or one of its affiliates.
If a franchisee wishes to purchase or lease from a supplier not already approved, they must submit a written request for approval to Dollar Rent A Car, along with any information or samples that Dollar Rent A Car requires. Dollar Rent A Car has the right to conduct periodic inspections of the items and/or the supplier's facilities. They can also request samples for testing, either by themselves or an independent certified laboratory, with the franchisee bearing the costs of evaluation and testing.
Dollar Rent A Car will then notify the franchisee of their decision within 90 days of receiving the request and completing the evaluation and testing, if required. Dollar Rent A Car may deny the request for any reason, including a decision to limit the number of approved suppliers. They also reserve the right to revoke approval of specific items or suppliers if they no longer meet Dollar Rent A Car's standards or are no longer deemed appropriate for the franchised business. This policy gives Dollar Rent A Car significant control over the supply chain and product standards within its franchise system.