Is a Dollar Rent A Car franchisee required to sign a confidentiality and non-competition agreement?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
What This Means (2025 FDD)
Yes, according to the 2025 Dollar Rent A Car Franchise Disclosure Document, a franchisee must sign a Confidentiality and Non-Competition Agreement. This agreement, included as Attachment F to the Franchise Agreement, outlines the terms and conditions regarding confidential information and restrictions on competition.
The agreement specifies that for 12 months after the Franchise Agreement is transferred, terminated, or expires, the franchisee and their owners are restricted from certain activities. These restrictions include soliciting or employing individuals employed by Dollar Rent A Car, its affiliates, or other franchisees. Additionally, franchisees are prohibited from owning, engaging in, or investing in any vehicle rental business within the franchisee's territory, within 100 miles of the territory's border, within any other Dollar Rent A Car franchisee's territory, within a 10-mile radius of another franchisee's territory, or within a 10-mile radius of any Dollar Rent A Car business operated by the company or its affiliates.
This non-compete clause ensures that franchisees do not leverage confidential information or unfairly compete with Dollar Rent A Car or its other franchisees after their franchise relationship ends. Prospective franchisees should carefully review Attachment F to fully understand the scope and limitations of these restrictions before signing the Franchise Agreement.