factual

What is the duration of the initial franchise agreement for Dollar Rent A Car?

Dollar_Rent_A_Car Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchise Agreement No.: See location numbers listed below.
Agreement Issue Date:
Effective Date: [TBD]
Expiration Date: [5] years after Effective Date
Franchisor: [HERTZ SYSTEM, INC. / DOLLAR RENT A CAR, INC. / THRIFTY RENT-A-CAR SYSTEM, LLC]
Franchisor Notice Address: [HERTZ SYSTEM, INC. / DOLLAR RENT A CAR, INC. / THRIFTY RENT-A-CAR SYSTEM, LLC] Attn: Franchise Operations 8501 Williams Road Estero, FL 33928, USA
Franchisee Name: [ENTITY NAME]
Franchisee Notice Address: [ENTER ADDRESS FOR LEGAL NOTICES – this may or may not be one of the Locations]
Trade Name(s): [CHOOSE AS APPROPRIATE:] “Thrifty” or “Thrifty Car Rental” or “Thrifty Rent-A-Car System” OR “Hertz” or “Hertz Car Rental” OR “Dollar” or “Dollar Rent A Car”
Initial Fee: [ENTER AMOUNT] or [Not applicable]
Future Renewal Terms: Up to [three (3) two (2) one (1)] renewal term[s] of five (5) years [each], subject to the restrictions and qualifications set forth in the Franchise Agreement.
Renewal Fee: Upon renewal, the renewal fee will be equivalent to the fees and expenses of Franchisor incurred in connection with renewal, not to exceed $25,000.

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 initial term of the franchise agreement is five years from the effective date. The specific effective date is to be determined (TBD) and will be documented in the franchise agreement.

Upon completion of the initial term, Dollar Rent A Car offers the possibility of renewing the franchise agreement. Franchisees may be granted up to three renewal terms, each lasting five years, contingent upon meeting specific requirements and qualifications outlined in the franchise agreement.

If a franchisee is eligible and chooses to renew their agreement with Dollar Rent A Car, they will incur a renewal fee. This fee is designed to cover Dollar Rent A Car's expenses associated with the renewal process, but will not exceed $25,000. This fee structure is fairly standard in the franchise industry, where renewal fees are common to offset administrative and legal costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.