factual

Does Dollar Rent A Car have indemnification agreements with its directors and officers?

Dollar_Rent_A_Car Franchise · 2025 FDD

Answer from 2025 FDD Document

The Company has entered into customary indemnification agreements with each of its directors and certain of its officers. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third-party claim.

Source: Item 23 — RECEIPTS (FDD pages 102–301)

What This Means (2025 FDD)

According to the 2025 Dollar Rent A Car Franchise Disclosure Document, Dollar Rent A Car has entered into customary indemnification agreements with each of its directors and certain of its officers. This means that Dollar Rent A Car has a legal obligation to protect these individuals from certain liabilities and expenses they may incur while acting in their official capacities for the company.

These indemnification agreements are triggered by a breach of contract terms or a third-party claim. This protection typically covers legal costs, settlements, and judgments resulting from lawsuits or other legal proceedings. The purpose of such agreements is to attract and retain qualified individuals to serve as directors and officers, as it provides them with a degree of financial security against potential risks associated with their roles.

For a prospective Dollar Rent A Car franchisee, this information is relevant because it provides insight into the company's risk management practices and its commitment to protecting its leadership. While the franchisee may not directly benefit from these agreements, they can be seen as a sign of a well-managed and responsible organization. Franchisees may want to inquire about the specific terms and conditions of these indemnification agreements to fully understand the scope of protection provided to Dollar Rent A Car's directors and officers.

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.