factual

What happens if set-off is not possible in the Dollar Rent A Car franchisee's jurisdiction?

Dollar_Rent_A_Car Franchise · 2025 FDD

Answer from 2025 FDD Document

If in your jurisdiction set-off is not possible due to the local laws we or our affiliate(s) will hold monies due to you or your affiliate as a lien, free from interest, until such time as you or your affiliate(s) have paid all monies owed by you or your affiliate to us and our affiliate(s).

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 set-off is not possible in a franchisee's jurisdiction due to local laws, Dollar Rent A Car or its affiliates will hold monies due to the franchisee or their affiliates as a lien, free from interest. This lien will remain in place until the franchisee or their affiliates have paid all monies owed to Dollar Rent A Car and its affiliates.

In simpler terms, this means that if local laws prevent Dollar Rent A Car from directly deducting what a franchisee owes them from what they owe the franchisee, Dollar Rent A Car will instead place a hold on the money they owe the franchisee. This hold acts as a security, ensuring that Dollar Rent A Car will be paid what is owed to them. The franchisee will not receive the money held by Dollar Rent A Car until all outstanding debts to Dollar Rent A Car are settled.

This arrangement protects Dollar Rent A Car's financial interests in situations where direct set-off is legally restricted. However, it could create a financial burden for the franchisee, as they will not have access to the funds owed to them by Dollar Rent A Car until all their debts are cleared. Prospective franchisees should consider the potential impact of this policy, especially if they anticipate any difficulties in meeting their financial obligations to Dollar Rent A Car.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.