Does the Dollar Rent A Car Franchise Agreement specify when the renewal fee must be paid?
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 | ||
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 for successive periods if the franchisee meets certain conditions. One of these conditions is that the franchisee must execute a new franchise agreement and pay a renewal fee.
The FDD specifies that the renewal fee amount is detailed in Attachment A of the Franchise Agreement. While it states that the franchisee must pay a renewal fee in advance of each renewal period, it does not specify a particular deadline or timeframe for when the renewal fee must be paid, other than it being 'in advance of each such renewal.'
In order to renew their franchise agreement with Dollar Rent A Car, a franchisee must also provide written notice of their election to renew, no more than 12 months and no less than 9 months before the end of the current term. Furthermore, the franchisee must have paid all amounts owed to Dollar Rent A Car on or before their due dates and meet the then-current qualification and training requirements. They must also cover Dollar Rent A Car's out-of-pocket costs related to the renewal application and execute a general release of claims against the franchisor.