Does the Dollar Rent A Car Franchise Agreement specify the number of renewal periods?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
THE FRANCHISE RELATIONSHIP
FRANCHISE AGREEMENT
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | 2.2 | The term of each franchise given in the Franchise Agreement shall |
| franchise term | begin on the Effective Date and end on the expiration date set forth in | |
| Attachment A thereto. | ||
| b. Renewal or | 7.1 | The Franchise Agreement may be renewed, provided (i) you are not |
| extension of the | then in default of any provision of your Franchise Agreement, any | |
| term | amendment thereof or successor thereto, or any other agreement | |
| between you or your affiliates and us or our affiliates, (ii) have not | ||
| failed at any time to make any payment owed to us or our affiliates in | ||
| a timely manner and (iii) have at all times been in compliance or | ||
| material compliance with all the terms and conditions of the Franchise | ||
| Agreement and all such other agreements during the terms thereof, | ||
| you may, at your option, renew the franchise granted to you under the | ||
| Franchise Agreement for such number of successive renewal periods | ||
| ("Renewal Periods"), if any, set forth in Attachment A to your | ||
| Franchise Agreement, provided that in advance of each such renewal, | ||
| you execute a new franchise agreement and pay a renewal fee in the | ||
| 7.1 | amount set forth in Attachment A to the Franchise Agreement. | |
| c. Requirements | In addition to the requirements set forth in "b." above the following | |
| for you to renew | conditions must also be met before and at the time of each renewal: | |
| or extend | (a) you have given us written notice of your election to renew not more | |
| than 12 months nor less than 9 months prior to the end of the term | ||
| (and, as applicable, the end of the Renewal Periods); (b) you have paid | ||
| all amounts owed to us on or before the dates on which they are due; | ||
| (c) you have complied with our then-current qualification and training | ||
| requirements; (d) you have paid our out-of-pocket costs relating to | ||
| your application for a renewal franchise; (e) you and your owners must | ||
| execute a general release, in a form then prescribed by us, of any and | ||
| all claims against us, our Parent and affiliates and their respective | ||
| officers, directors, members, shareholders, and employees, in their | ||
| corporate and individual capacities, including claims arising under the | ||
| Franchise Agreement or under federal, state or local laws, rules, | ||
| regulations or orders; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, the Franchise Agreement can be renewed if certain conditions are met. These conditions include not being in default of any agreement with Dollar Rent A Car, making timely payments, and complying with the terms of the Franchise Agreement. If these conditions are met, the franchisee may renew the franchise for the number of successive renewal periods, if any, that are specified in Attachment A of the Franchise Agreement. To renew, the franchisee must execute a new franchise agreement and pay a renewal fee, the amount of which is also set forth in Attachment A.
In addition to the aforementioned conditions, Dollar Rent A Car requires that the franchisee provide written notice of their election to renew not more than 12 months nor less than 9 months prior to the end of the current term. The franchisee must also have paid all amounts owed to Dollar Rent A Car on or before their due dates and complied with the company's then-current qualification and training requirements. Furthermore, the franchisee must cover Dollar Rent A Car's out-of-pocket costs related to the renewal application.
Before each renewal, Dollar Rent A Car requires the franchisee and their owners to execute a general release of all claims against the company and its affiliates. The franchisee must also refurbish, repair, replace, or obtain any equipment, computer systems, signs, and other items necessary to modernize the franchised business to reflect the company's current standards. Therefore, the specific number of renewal periods, the renewal fee, and other details are found in Attachment A of the Franchise Agreement, which a prospective franchisee should carefully review.