Must a Dollar Rent A Car franchisee employ a manager for their franchised business?

You must devote a significant amount of personal time, energy and direction, and your best efforts, to developing, conducting, managing and operating Your Franchised Business and to encouraging the use of our world-wide car renting services. You must employ (or you may serve as) a manager who must: (i) be disclosed to us; (ii) complete required training; and (iii) have sufficient Vehicle Rental Business experience to manage and operate Your Franchised Business; and (iv) devote full time to the management and operation of Your Franchised Business. An employed manager is not required to have an equity interest in Your Franchised Business. You may disclose to your manager the confidential, proprietary information we give to you, but only to the extent necessary for operation of Your Franchised Business. We require your manager to sign a Confidentiality Agreement (Managerial Employees), the form of which is included as Attachment H to the Franchise Agreement, which is attached to this Disclosure Document as Exhibit A. You must sign our Confidentiality and Non- Competition Agreement (Owners), the form of which is included as Attachment F to the Franchise Agreement, which is attached to this Disclosure Document as Exhibit A. As stated in this agreement, you agree that for 12 months after the Franchise Agreement is transferred, is terminated or expires, you and your owners may not:

• (a) Employ or seek to employ any person who is at that time employed by us, our affiliates, or by another of our or our affiliates' franchisees, or otherwise directly or indirectly seek to induce such person to leave his or her employment; or
• (b) Own, engage in, be employed by, advise, assist, lease or sublease to, invest in, franchise, lend money to, agree to sell or sell all or substantially all the assets of the Franchised Business to, or have any other interest in, whether financial or otherwise, any Vehicle Rental Business:
  • (i) Within the Territory;
  • (ii) Within one hundred (100) miles of the border of the Territory;
  • (iii) Within the territory of any other Dollar franchisee;
  • (iv) Within a ten (10) mile radius of the border of the territory of any other Dollar franchisee; or
  • (v) Within a ten (10) mile radius of any Dollar Business operated by us or our affiliate.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 74–75)