For a Dollar Rent A Car franchise, what is the requirement for initial inventory of vehicles?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
ocation open the hours and days specified in the Operations Guide. We have the right to require You to periodically refurbish Your Locations at Your expense to ensure that it meets Our then-current standards for trade dress, appearance, colors, logo style, and cleanliness.
- 12.4. Vehicle Condition, Inventory and Classification. You shall own, use or keep for use in Your Franchised Business at least the minimum number of Vehicles shown on Attachment D to this Agreement. You shall maintain all Vehicles used in the conduct of Your Franchised Business in safe, efficient, clean and presentable condition, in first class mechanical and running order, and in conformity with all applicable safety and operating laws, regulations, rules and standards as may be promulgated by governmental authorities or contained in the Operations Guide. Vehicles shall, at a minimum, be maintained in accordance with manufacturers' recommendations. You shall promptly respond to manufacturer's vehicle recalls and comply with the manufacturer's instructions related thereto, and promptly comply with Our procedures and instructions related to vehicle groundings. You shall offer for rental or lease only such Vehicles as comply with the standards prescribed in the Operations Guide from time to time, including standards regarding type, mileage, and model year of each Vehicle, and shall refrain from offering for rental or lease any Vehicle not expressly approved or required by Us or in the manner and style or under any methods prohibited by Us. If no contrary standards are prescribed in the Operations Guide, You shall not keep any Vehicle in Your inventory of Vehicles for rental (a) later than twenty-four (24) months after first driven on public streets or roads; or (b) which have been driven more than forty thousand (40,000) miles. The classification of Vehicles used in Your Franchised Business (such as economy, compact, intermediate, standard, premium, luxury) shall be formulated by Us from time to time and listed in the Operations Guide, and You agree to adhere to such classifications.
- 12.5. Customer Service and Image Standards. You covenant and agree that You shall conduct business in conformity and compliance with the image, integrity, quality, cleanliness and product and service standards as described in the Operations Guide from time to time. You acknowledge and agree that strict adherence to the standards provides the basis for the goodwill associated with the Marks and the Franchised System. Your failure to comply with the standards referenced in this Section 12.5 will constitute a breach of this Agreement, for which We shall have the right to terminate according to Section 19.4 hereof.
- 12.6. Operations Guide. The Operations Guide is Our property and shall be immediately returned to Us whenever this Agreement expires or is terminated for any reason. We have the right to add to or modify the Operations Guide from time to time to change operating procedures, maintain the goodwill associated with the Marks and to meet competition.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, franchisees must own, use, or keep for use in their franchised business at least the minimum number of vehicles shown on Attachment D of the Franchise Agreement. The specific minimum number of vehicles required for the initial inventory is detailed in this attachment.
Furthermore, the FDD outlines specific requirements for maintaining the vehicle fleet. Franchisees must keep all vehicles in safe, efficient, clean, and presentable condition, ensuring they are in first-class mechanical and running order. Compliance with all applicable safety and operating laws, regulations, rules, and standards, as set forth by governmental authorities or in the Operations Guide, is mandatory. Vehicles must be maintained according to the manufacturers' recommendations, and franchisees must promptly address any manufacturer recalls or vehicle groundings.
The Dollar Rent A Car franchise agreement also specifies standards for the vehicles offered for rental or lease. Franchisees must only offer vehicles that comply with the standards prescribed in the Operations Guide, including standards related to the type, mileage, and model year of each vehicle. Unless otherwise specified in the Operations Guide, vehicles should not be kept in the rental inventory for longer than 24 months after being first driven on public roads or if they have been driven more than 40,000 miles. The classification of vehicles, such as economy, compact, or luxury, is determined by Dollar Rent A Car and listed in the Operations Guide, and franchisees must adhere to these classifications.
Failure to maintain the minimum average number of vehicles or the minimum number of vehicles, as detailed in the agreement, may result in the termination of the Dollar Rent A Car franchise agreement. Therefore, prospective franchisees should carefully review Attachment D and the Operations Guide to fully understand the vehicle inventory requirements and standards.