Does the guarantee of Dollar Rent A Car's obligations extend to all obligations, or only financial obligations?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, The Hertz Corporation, a Delaware corporation (the "Guarantor"), located at 8501 Williams Road, Estero, Florida 33928, absolutely and unconditionally guarantees to assume the duties and obligations of Dollar Rent A Car, Inc., an Oklahoma corporation, located at 8501 Williams Road, Estero, Florida 33928 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 100–101)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, the guarantee of performance provided by The Hertz Corporation extends to all duties and obligations of Dollar Rent A Car under its franchise registration and Franchise Agreement. This guarantee remains in effect until all obligations of Dollar Rent A Car are satisfied or the liability to its franchisees is completely discharged.
The guarantee ensures that The Hertz Corporation will assume the responsibilities of Dollar Rent A Car, providing a level of security for franchisees. This includes adherence to the terms outlined in the Franchise Agreement and compliance with franchise registration requirements in each state. The guarantee remains in place even if a franchisee's claim against Dollar Rent A Car is outstanding, meaning The Hertz Corporation's obligations continue until the claim is resolved.
This guarantee is binding on The Hertz Corporation and its successors and assigns, offering long-term assurance to Dollar Rent A Car franchisees. The Hertz Corporation, as the Guarantor, does not waive receipt of notice of default on the part of Dollar Rent A Car, ensuring they are informed of any failures by Dollar Rent A Car to meet its obligations. This arrangement is designed to provide franchisees with confidence that the franchisor's duties will be fulfilled, backed by the financial and operational strength of The Hertz Corporation.