What happens if an audit reveals underpayment to Dollar Rent A Car?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee 17 | Cost of the audit if we discover you have underreported by two percent (2%) or more or we discover you have failed to comply with any provision of the Franchise Agreement or any other agreement between you and us or our affiliate(s). | Upon demand | If the audit or any other inspection should reveal that any payments to us have been underpaid, then you shall immediately pay to us the amount of the underpayment plus interest at five percent (5%), or, if less, the maximum rate allowed by applicable law. |
Source: Item 6 — OTHER FEES (FDD pages 39–46)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, if an audit reveals that a franchisee has underreported payments by 2% or more, or has failed to comply with any provision of the Franchise Agreement or any other agreement with Dollar Rent A Car or its affiliates, the franchisee will be responsible for the cost of the audit.
In addition to covering the audit costs, the franchisee must immediately pay Dollar Rent A Car the amount of the underpayment, along with interest. The interest rate will be 5%, or the maximum rate allowed by applicable law if it is lower than 5%.
This policy incentivizes accurate reporting and compliance. Franchisees should maintain meticulous records and adhere strictly to the terms of their agreements to avoid triggering an audit and incurring these additional expenses. This is a fairly standard practice in franchising, as franchisors need to ensure accurate royalty payments based on gross sales.