Who makes the arrangements for the purchase of cars for a Dollar Rent A Car franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
You will make all arrangements for the purchase of the cars.
The present cost of current model cars typically ranges from $25,000 to $75,000 per car.
If you offer larger types of vehicles, such as sport utility vehicles ("SUVs"), or luxury cars, your costs could be higher.
The range in the table is based on a starting fleet of 30 to 300 cars.
You may purchase cars with financing provided by banks or finance companies and the terms and amount of financing will vary depending on credit conditions and your financial position.
You must maintain at least, as shown on Attachment D to your Franchise Agreement: (i) the minimum number of vehicles required for each calendar month during the term of the Franchise Agreement; or (ii) the minimum average number of vehicles for either 6 consecutive months or 9 months out of any 12 consecutive months.
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 46–52)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the franchisee is responsible for making all arrangements for purchasing the cars needed to operate their business. The FDD indicates that the cost of current model cars typically ranges from $25,000 to $75,000 per car. This range is based on a starting fleet size of 30 to 300 cars. However, if a franchisee chooses to offer larger vehicles like SUVs or luxury cars, the costs could be higher.
Dollar Rent A Car franchisees have the option to finance their car purchases through banks or finance companies. The terms and amount of financing will vary depending on credit conditions and the franchisee's financial position. The franchisee must maintain at least the minimum number of vehicles required for each calendar month or the minimum average number of vehicles for either 6 consecutive months or 9 months out of any 12 consecutive months, as outlined in Attachment D of the Franchise Agreement.
This requirement means prospective Dollar Rent A Car franchisees need to have a solid financial plan in place to secure financing and manage their fleet. The initial investment table shows that passenger cars can cost between $750,000 to $15,000,000, depending on the fleet size. This substantial investment highlights the importance of carefully considering the number and type of vehicles needed to meet the franchise agreement requirements and market demand.