How many five-year renewal terms are Dollar Rent A Car franchisees eligible for?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchise Agreement No.: | See location numbers listed below. |
|---|---|
| Agreement Issue Date: | |
| Effective Date: | [TBD] |
| Expiration Date: | [5] years after Effective Date |
| Franchisor: | [HERTZ SYSTEM, INC. / DOLLAR RENT A CAR, INC. / THRIFTY RENT-A-CAR SYSTEM, LLC] |
| Franchisor Notice Address: | [HERTZ SYSTEM, INC. / DOLLAR RENT A CAR, INC. / THRIFTY RENT-A-CAR SYSTEM, LLC] Attn: Franchise Operations 8501 Williams Road Estero, FL 33928, USA |
| Franchisee Name: | [ENTITY NAME] |
| Franchisee Notice Address: | [ENTER ADDRESS FOR LEGAL NOTICES – this may or may not be one of the Locations] |
| Trade Name(s): | [CHOOSE AS APPROPRIATE:] “Thrifty” or “Thrifty Car Rental” or “Thrifty Rent-A-Car System” OR “Hertz” or “Hertz Car Rental” OR “Dollar” or “Dollar Rent A Car” |
| Initial Fee: | [ENTER AMOUNT] or [Not applicable] |
| Future Renewal Terms: | Up to [three (3) two (2) one (1)] renewal term[s] of five (5) years [each], subject to the restrictions and qualifications set forth in the Franchise Agreement. |
| Renewal Fee: | Upon renewal, the renewal fee will be equivalent to the fees and expenses of Franchisor incurred in connection with renewal, not to exceed $25,000. |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, a franchisee may be eligible for up to one, two, or three renewal terms, each lasting five years. The specific number of renewal terms available is subject to the restrictions and qualifications outlined in the Franchise Agreement. Therefore, the exact number of renewal terms a franchisee can obtain is not definitively set and may vary.
Upon each renewal, Dollar Rent A Car specifies that the renewal fee will be equivalent to the fees and expenses they incur in connection with the renewal, but this fee will not exceed $25,000. This means that franchisees need to be prepared to pay a renewal fee that could potentially reach this maximum amount, depending on Dollar Rent A Car's expenses.
Prospective franchisees should carefully review the Franchise Agreement to understand the specific conditions and qualifications that determine eligibility for renewal terms. Understanding these requirements is crucial for planning the long-term operation and potential sale of the franchise. It is also important to inquire about what fees and expenses Dollar Rent A Car typically incurs during the renewal process to better estimate the potential renewal fees.