What is the duration of the initial Dollar Rent A Car franchise agreement term?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer 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 expiration date is specifically noted as '[5] years after Effective Date'.
This means that a new Dollar Rent A Car franchisee will operate under the terms of the franchise agreement for a defined period of five years. After this initial term, the franchisee may have the option to renew the agreement, subject to meeting certain conditions and qualifications outlined in the franchise agreement.
The Dollar Rent A Car franchise agreement also mentions potential renewal terms. The agreement states that there can be '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.' This indicates that franchisees might have the opportunity to extend their franchise agreement for additional five-year periods, with the specific number of renewal terms varying based on the agreement and the franchisee's compliance with its terms. Upon renewal, Dollar Rent A Car states that 'the renewal fee will be equivalent to the fees and expenses of Franchisor incurred in connection with renewal, not to exceed $25,000'.
Prospective franchisees should carefully review the franchise agreement to understand the specific conditions for renewal, including any performance metrics, required investments, or other obligations that must be met to qualify for a renewal term. Understanding these terms is crucial for long-term planning and investment decisions.