How is the Dollar Rent A Car Franchised Territory defined in the Franchise Agreement?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You will be granted a non-exclusive, geographic Franchised Territory in which you will operate Your Franchised Business. The Franchised Territory varies from franchisee to franchisee, and will be identified by, at a minimum, the name of a city or other political subdivision(s) in Attachment A to your Franchise Agreement. We retain and reserve all rights not expressly granted to you in the Franchise Agreement. We retain, for ourselves, and our parents, subsidiaries, and affiliates the right, among others, to use, and to franchise others to use, the System and the Marks within and outside of your Franchised Territory, and to develop, use and franchise the use of other proprietary marks within and outside of your Franchised Territory in connection with the sale, rental, lease, or other use of the same, similar or different products and services, on any terms and conditions that we deem advisable, and without granting you any related rights. We also retain the right to sell our assets, engage in a public offering or private placement of ownership interests, merge with or acquire other companies or to be acquired by another company (including in each instance a company that may own or operate systems or chains that may be competitive with the System). We and our affiliates may develop, use and franchise methods, plans, programs or procedures for the operation of Vehicle Rental Businesses which are not part of the System (for example, the use of electronic kiosks for reservation and customer service functions) and you will have no rights to those methods, plans, programs or procedures unless we expressly make them part of the System franchised to you.
Source: Item 12 — TERRITORY (FDD pages 69–71)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, franchisees are granted a non-exclusive, geographic territory. This territory is defined by the name of a city or other political subdivision, as specified in Attachment A of the Franchise Agreement. Dollar Rent A Car retains all rights not expressly granted to the franchisee, including the right to use and franchise others to use the system and marks within and outside the franchisee's territory. They also reserve the right to develop and franchise other proprietary marks within and outside the territory for similar or different products and services.
This means that a Dollar Rent A Car franchisee will not have an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Dollar Rent A Car. The franchisee's territory is limited to a specific geographic area, but Dollar Rent A Car can still operate or franchise other businesses, even those that compete, within that same territory. This includes the operation of Hertz and Thrifty businesses by affiliates, as well as car-sharing services, used vehicle sales, and rental of vehicles other than cars.
Dollar Rent A Car also retains the right to use alternative distribution methods, such as the Internet, within the franchisee's territory without compensating the franchisee. While franchisees can accept reservations from outside their territory, they cannot actively solicit reservations from outside their territory without prior permission. The franchisee is obligated to refer customers to other Dollar Rent A Car businesses if they cannot provide the requested product or service, and Dollar Rent A Car may refer customers to other car rental businesses, including those of affiliates or franchisees.
If Dollar Rent A Car determines that additional locations are needed within the franchisee's territory, these locations will be noted on Attachment A of the Franchise Agreement, and the franchisee will be required to open them by the specified date. Failure to meet this schedule may result in termination of the Franchise Agreement or modification of the territory. The franchisee does not have any options or rights of first refusal to acquire additional franchises within the territory or contiguous areas. If a franchisee wishes to relocate their business within the territory, they must follow the procedure for approval of a new location, with approval dependent on meeting Dollar Rent A Car's standards for proximity to relevant facilities and businesses.