Is the Guarantee of Performance for Dollar Rent A Car limited geographically?
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 Dollar Rent A Car's 2025 Franchise Disclosure Document, the Guarantee of Performance provided by The Hertz Corporation extends to each state where Dollar Rent A Car's franchise is registered. The guarantee ensures that The Hertz Corporation will fulfill the obligations of Dollar Rent A Car, Inc. under its franchise registration in those states and under the Franchise Agreement outlined in the 2025 Franchise Disclosure Document. This obligation remains until all responsibilities of Dollar Rent A Car under the franchise registrations and the Franchise Agreement are met, or until Dollar Rent A Car's liability to its franchisees is completely discharged.
This guarantee is significant for prospective Dollar Rent A Car franchisees as it provides an additional layer of security. It means that The Hertz Corporation, as the guarantor, is committed to ensuring that Dollar Rent A Car meets its obligations to its franchisees. This could be particularly reassuring for franchisees concerned about the financial stability or performance of Dollar Rent A Car, as it provides recourse to The Hertz Corporation in case Dollar Rent A Car fails to meet its duties.
The guarantee explicitly states that The Hertz Corporation is not released from liability if a franchisee's claim against Dollar Rent A Car remains outstanding. This clause reinforces the commitment of the guarantor to address and resolve any claims made by franchisees. The guarantee is binding on The Hertz Corporation and its successors and assigns, ensuring long-term security for the franchisees. The guarantor waives notice of acceptance but does not waive receipt of notice of default on the part of Dollar Rent A Car, ensuring they are informed of any issues.