Does the Dollar Rent A Car franchisee have the option to renew the franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
THE FRANCHISE RELATIONSHIP
FRANCHISE AGREEMENT
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | 2.2 | The term of each franchise given in the Franchise Agreement shall |
| franchise term | begin on the Effective Date and end on the expiration date set forth in | |
| Attachment A thereto. | ||
| b. Renewal or | 7.1 | The Franchise Agreement may be renewed, provided (i) you are not |
| extension of the | then in default of any provision of your Franchise Agreement, any | |
| term | amendment thereof or successor thereto, or any other agreement | |
| between you or your affiliates and us or our affiliates, (ii) have not | ||
| failed at any time to make any payment owed to us or our affiliates in | ||
| a timely manner and (iii) have at all times been in compliance or | ||
| material compliance with all the terms and conditions of the Franchise | ||
| Agreement and all such other agreements during the terms thereof, | ||
| you may, at your option, renew the franchise granted to you under the | ||
| Franchise Agreement for such number of successive renewal periods | ||
| ("Renewal Periods"), if any, set forth in Attachment A to your | ||
| Franchise Agreement, provided that in advance of each such renewal, | ||
| you execute a new franchise agreement and pay a renewal fee in the | ||
| 7.1 | amount set forth in Attachment A to the Franchise Agreement. | |
| c. Requirements | In addition to the requirements set forth in "b." above the following | |
| for you to renew | conditions must also be met before and at the time of each renewal: | |
| or extend | (a) you have given us written notice of your election to renew not more | |
| than 12 months nor less than 9 months prior to the end of the term | ||
| (and, as applicable, the end of the Renewal Periods); (b) you have paid | ||
| all amounts owed to us on or before the dates on which they are due; | ||
| (c) you have complied with our then-current qualification and training | ||
| requirements; (d) you have paid our out-of-pocket costs relating to | ||
| your application for a renewal franchise; (e) you and your owners must | ||
| execute a general release, in a form then prescribed by us, of any and | ||
| all claims against us, our Parent and affiliates and their respective | ||
| officers, directors, members, shareholders, and employees, in their | ||
| corporate and individual capacities, including claims arising under the | ||
| Franchise Agreement or under federal, state or local laws, rules, | ||
| regulations or orders; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the Franchise Agreement may be renewed. To be eligible for renewal, the franchisee must not be in default of any provision of the Franchise Agreement, any amendment thereof or successor thereto, or any other agreement between the franchisee or its affiliates and Dollar Rent A Car or its affiliates. The franchisee must not have failed to make any payment owed to Dollar Rent A Car or its affiliates in a timely manner and must have been in compliance or material compliance with all the terms and conditions of the Franchise Agreement and all such other agreements during the terms thereof.
The franchisee has the option to renew the franchise granted under the Franchise Agreement for the number of successive renewal periods, if any, set forth in Attachment A to the Franchise Agreement. Prior to each renewal, the franchisee must execute a new franchise agreement and pay a renewal fee in the amount set forth in Attachment A to the Franchise Agreement.
In addition to the above requirements, the franchisee must meet other conditions before and at the time of each renewal. The franchisee must provide written notice of their election to renew not more than 12 months nor less than 9 months prior to the end of the term. All amounts owed to Dollar Rent A Car must be paid on or before the dates on which they are due. The franchisee must comply with Dollar Rent A Car's then-current qualification and training requirements and pay Dollar Rent A Car's out-of-pocket costs relating to the application for a renewal franchise. The franchisee and their owners must execute a general release of any and all claims against Dollar Rent A Car, its Parent and affiliates and their respective officers, directors, members, shareholders, and employees. Finally, the franchisee must refurbish, repair, replace or obtain, at their expense, such equipment, computer systems, signs, interior and exterior decor items, fixtures, furnishings, supplies and other products and materials required for the operation of the Franchised Business as Dollar Rent A Car may reasonably require and must otherwise modernize the Franchised Business to reflect the then-current standards.