What discretion does Dollar Rent A Car have in protecting its rights to the Marks?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
ere are no agreements currently in effect that significantly limit our rights to use or license the use of the Marks in any manner material to the license.
You must immediately notify us of any apparent infringement of the Marks or challenge to the Marks or claim by any person of any rights in any of the Marks. We have the exclusive right to take the action we, in our sole discretion, deem appropriate in response to any infringement or challenge. We have the right to exclusively control any litigation or USPTO or other administrative or agency proceeding caused by any infringement of or challenge to the Marks. You must sign any documents, and do what may, in our counsel's opinion, be necessary to protect our interests in any litigation or USPTO or other administrative or agency proceeding or to otherwise protect and maintain our interests in the Marks.
We are not obligated by the Franchise Agreement or otherwise to protect your rights to use the Marks and are not obligated to protect you against claims of infringement or unfair competition. However, we are obligated to take such action as we deem appropriate to preserve our rights to and interest in the Marks and our right to sublicense them to other parties. We are obligated to take such action as we deem appropriate to protect and defend our right to the Marks against infringement, confusion, tarnishment, dilution or other diminution or loss.
Source: Item 13 — TRADEMARKS (FDD pages 71–73)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, Dollar Rent A Car has significant discretion in protecting its trademarks. As a franchisee, you must immediately inform Dollar Rent A Car of any potential infringement, challenges, or claims against the Marks. However, Dollar Rent A Car has the exclusive right to decide what action to take in response to these issues. They also control any related litigation or proceedings with the USPTO or other agencies. As a franchisee, you are obligated to assist Dollar Rent A Car by signing documents or taking actions deemed necessary by their counsel to protect their interests in the Marks.
Dollar Rent A Car is not obligated to protect a franchisee's right to use the Marks or defend against infringement claims. However, Dollar Rent A Car is obligated to take action to protect its own rights and interests in the Marks, including the right to sublicense them. This includes defending the Marks against infringement, confusion, tarnishment, dilution, or other loss. Dollar Rent A Car has full discretion in choosing the specific measures to take to fulfill these obligations and will only take actions they deem reasonably necessary and appropriate.
This means that while Dollar Rent A Car is proactive in protecting its trademarks, the franchisee has limited control over how these protections are enforced. The franchisee is responsible for notifying Dollar Rent A Car of any potential issues, but Dollar Rent A Car ultimately decides the course of action. This is a common arrangement in franchising, as the franchisor needs to maintain consistent brand standards and protect the overall value of the trademark for the entire system. A prospective franchisee should understand that while they benefit from using the Dollar Rent A Car brand, the franchisor has the final say in how the brand is protected.