When is the 'Holdover' fee payable for a Dollar Rent A Car franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
as otherwise described above, all fees are payable in a lump sum.
ITEM 6 OTHER FEES
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Franchise Fee 2 | Ranges from 6% to 9% of Gross Receipts derived from Your Franchised Business, subject to a minimum annual amount determined by us based on various factors including, without limitation, market size, and number and type of locations. | Payable within 10 days after receipt of the statement of payment obligations ("Statement") which is typically received on the 5th business day of each month for the preceding month | See Footnote 2. |
| Program | Will vary. | As required by us. | Amounts will vary |
| Assessments 3 | depending on the Program. | ||
| Insurance | Cost of procuring insurance for you. | As billed | |
| Reservation Charges 4 | Fee is assessed for each reservation made through our Reservations System. The reservation charge is estimated to range from $3.84 to $6.30 per passenger car reservation. | Payable on the 10th day after receipt of the statement for the preceding month | Charge will vary based on aggregate estimated costs incurred in operating reservations facilities divided by estimated number of reservations to be made. |
| Travel Industry Commissions 5 | 0-30% of gross rental charges | Payable on the 10th day after receipt of the statement for the preceding month | We negotiate rates with travel agents, airlines and other travel industry members; these rates will vary. |
| Travel Vouchers 6 | Service fee presently equal to 5% of Net Proceeds of the voucher | Automatically deducted from payment to you by us for vouchers accepted as payment from customers | See Footnote 6. |
| EDI Cost 7 | $6.50 for TSD and $1.50 for OKC Administration for a total of $8.00 per reservation | As billed. | Insurance Replacement reservations charge and processing fee. See Footnote 7. |
| Rental Processing Fee | 2.5% for Auto Feed; 4.6% for manual feed for Insurance and Service Replacement customers | As billed. | Processing fee for insurance and service replacement customers. |
| Guaranteed Charge Cards - Service Fees 8 | Currently between 1% and 5% of gross rental charges. | Automatically deducted from payment to you for gross rental charges less fees deducted by card issuer | Service fees for processing and collecting for car rentals charged on required charge cards. See Footnote 8. |
Source: Item 6 — OTHER FEES (FDD pages 39–46)
What This Means (2025 FDD)
I am unable to provide information about the 'Holdover' fee for a Dollar Rent A Car franchise, as the excerpt from the 2025 Franchise Disclosure Document does not mention this specific fee. The document includes details on various fees such as the Franchise Fee, Program Assessments, Insurance, Reservation Charges, Travel Industry Commissions, Travel Vouchers, EDI Cost, Rental Processing Fee, and Guaranteed Charge Cards - Service Fees.
However, the FDD excerpt does detail when several other fees are due. For example, the Franchise Fee, which ranges from 6% to 9% of Gross Receipts, is payable within 10 days after receipt of the statement of payment obligations. Reservation Charges, estimated to range from $3.84 to $6.30 per passenger car reservation, are payable on the 10th day after receipt of the statement for the preceding month. Travel Industry Commissions, which range from 0-30% of gross rental charges, are also payable on the 10th day after receipt of the statement for the preceding month.
To learn more about the 'Holdover' fee, a prospective Dollar Rent A Car franchisee should ask the franchisor directly about the fee's amount, what triggers it, and when it is payable. This information is crucial for understanding the full financial obligations of the franchise agreement.