For a Dollar Rent A Car franchise, what is the initial franchise fee payable as?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee 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.
The initial franchise fee is not refundable under any circumstances.
Existing franchisees who either purchase a new franchise or purchase an existing companyowned location from our Parent or an affiliate may have initial franchise fees that vary from this chart.
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 46–52)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 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. If Dollar Rent A Car allows installment payments, interest will not be charged on the deferred portion of the fee.
It is important to note that the initial franchise fee is non-refundable under any circumstances. This means that once the fee is paid, it will not be returned to the franchisee, regardless of whether the franchise agreement is terminated or the business does not launch.
Existing Dollar Rent A Car franchisees who purchase a new franchise or an existing company-owned location from Dollar Rent A Car's parent company or an affiliate may have initial franchise fees that differ from the standard fees. Prospective franchisees should clarify the specific initial franchise fee applicable to their situation, especially if they are existing franchisees or considering purchasing a company-owned location.