Is a Dollar Rent A Car franchisee's manager required to sign a confidentiality agreement?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 74–75)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, if a franchisee employs a manager, Dollar Rent A Car requires that manager to sign a Confidentiality Agreement. The form for this agreement is included as Attachment H to the Franchise Agreement, which is attached to the Disclosure Document as Exhibit A.
The Confidentiality Agreement (Managerial Employees) outlines the terms and conditions under which the manager can access and handle Dollar Rent A Car's confidential information. This agreement is between Hertz System, Inc. / Dollar Rent A Car, Inc. / Thrifty Rent-A-Car System, LLC (the Franchisor), the Franchisee, and the Manager. It states that the manager, by virtue of their position, will gain access to confidential information and must agree to be bound by the confidentiality obligations.
The agreement defines "Confidential Information" as any data, reports, analyses, customer information, financial information, marketing strategies, business plans, operating manuals, and other materials related to the Franchisor, Franchisee, the System, and the Dollar Rent A Car Business. The manager's signature on this agreement acknowledges that violating the agreement will cause irreparable harm, potentially leading to an injunction to prevent further violation. Both the Franchisor and Franchisee are considered third-party beneficiaries of this agreement and can independently enforce its provisions.
This requirement ensures that Dollar Rent A Car's proprietary information and business practices are protected, even when a franchisee employs a manager to oversee daily operations. The franchisee is responsible for ensuring their manager adheres to this agreement, as any breach could have legal and financial repercussions for both the manager and the franchisee.