When are the fees payable for a Dollar Rent A Car franchise, assuming no exceptions apply?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
iately preceding a transfer by you. In 2024, a transfer fee of $137,960 was charged in connection with 1 transfer.
The initial franchise fee (or transfer fee, if applicable) is payable in a lump sum, or in our discretion, we may allow a portion of the fee to be paid in installments over a period not to exceed three years. Interest will not be charged on the deferred portion of the fee.
Source: Item 5 — INITIAL FEES (FDD pages 38–39)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, the initial franchise fee is generally payable in a lump sum. However, Dollar Rent A Car may, at its discretion, allow a portion of the fee to be paid in installments over a period not exceeding three years. Interest will not be charged on any deferred portion of the initial franchise fee. The initial franchise fee is non-refundable under any circumstances.
For a new Dollar Rent A Car franchisee, the minimum initial franchise fee is $25,000. The FDD estimates that the initial franchise fee will range from $25,000 to $500,000, based on a starting fleet of 30 to 300 rental cars. The initial franchise fees may vary based on factors such as potential car fleet size, area population and economic growth, hotel accommodations, existing Dollar national account customers, local airport passenger traffic, and the extent of recreational or regional markets.
If a franchisee is transferring their Dollar Rent A Car franchise to someone else, a transfer fee may be charged. The transfer fee is calculated as 5% of the average annual gross sales for the three years immediately preceding the transfer. In 2024, one transfer fee of $137,960 was charged. Except as otherwise described, all fees are payable in a lump sum.