Who must Dollar Rent A Car franchisees' insurance policies protect?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain, before beginning any operations under your Franchise Agreement, and must maintain in full force and effect at all times during the term of the Franchise Agreement and at your own expense, an insurance policy or policies protecting you, us, and your and our shareholders, affiliates, officers, directors, partners and employees, and other franchisees of ours and our affiliates against claims, loss, liability, personal injury, death, property damage, loss of business income, or expense arising or occurring upon or in connection with your operation of Your Franchised Business. If you have more than one brand, you must provide insurance coverage for each Franchised Business and your insurance policies must include Hertz, Thrifty and/or Dollar, their affiliates and their franchisees and subfranchisees as additional insureds; include a waiver of subrogation against Hertz, Thrifty and/or Dollar, their affiliates, and their franchisees and subfranchisees; and provide that such policies are primary. Your insurance policies must provide coverage for all renters, their employees, employers and immediate family members whom they authorize to use the rented vehicle, even though we may restrict the extent and to whom coverage will apply by the rental agreement. Policies must also provide for uninsured/underinsured motorist coverage and personal injury protection only as required by the laws of the state in which the vehicle was rented, or as required for certain corporate account renters with whom Dollar has corporate or special account agreements in accordance with the terms of the Master Agreements for those corporate or special accounts.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 52–58)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, franchisees must obtain and maintain insurance policies that protect several parties. These policies must protect the franchisee, Dollar Rent A Car itself, and the shareholders, affiliates, officers, directors, partners, and employees of both the franchisee and Dollar Rent A Car. The insurance must also extend protection to other Dollar Rent A Car franchisees and their affiliates.
For franchisees operating more than one brand, the insurance coverage must be provided for each franchised business. These policies must include Hertz, Thrifty, and/or Dollar, their affiliates, and their franchisees and subfranchisees as additional insureds. The policies must also include a waiver of subrogation against Hertz, Thrifty, and/or Dollar, their affiliates, and their franchisees and subfranchisees, ensuring that these parties are not subject to claims from the franchisee's insurance company. Furthermore, these policies must be primary, meaning they are the first to respond to a claim before any other insurance coverage.
The insurance policies must also provide coverage for all renters, their employees, employers, and immediate family members whom they authorize to use the rented vehicle, even if Dollar Rent A Car restricts the extent and to whom coverage will apply by the rental agreement. The policies must also provide for uninsured/underinsured motorist coverage and personal injury protection as required by the laws of the state in which the vehicle was rented, or as required for certain corporate account renters with whom Dollar Rent A Car has corporate or special account agreements in accordance with the terms of the Master Agreements for those corporate or special accounts. This comprehensive coverage ensures that a wide range of potential liabilities are addressed, protecting both the franchisee and Dollar Rent A Car from financial losses due to accidents, injuries, or damages.