Are the Franchise Agreements for Dollar Rent A Car, Hertz, and Thrifty cross-defaulted?

According to the 2025 Dollar Rent A Car FDD, the Franchise Agreements between Hertz, Dollar Rent A Car, and Thrifty are cross-defaulted. This is outlined in the Multiple-Brand Franchising Addendum, which addresses scenarios where a franchisee operates multiple brands under the Hertz Global Holdings umbrella.

Specifically, an event of default under one franchise agreement (Hertz, Dollar, or Thrifty) will automatically trigger a default under the other agreements. This gives Hertz the right to terminate the Hertz Franchise Agreement if the franchisee defaults on the Dollar Rent A Car or Thrifty agreements. Similarly, Dollar Rent A Car can terminate its agreement if there's a default under the Hertz or Thrifty agreements, and Thrifty can terminate its agreement if there's a default under the Hertz or Dollar Rent A Car agreements.

This cross-default provision means that a franchisee's financial or operational problems with one brand can have serious repercussions for their other franchises within the same group. It also means that the franchisor can terminate all agreements if the franchisee terminates one of the agreements. Prospective franchisees need to understand that their performance across all three brands is interconnected and that failure in one area can jeopardize their entire investment with Hertz, Dollar Rent A Car, and Thrifty.