What is the minimum late fee that Dollar Rent A Car charges on overdue amounts?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest and Late Fees 11 | Interest at the lesser of the rate we prescribe, or the maximum rate allowed by law, plus a late fee of not less than 5% of the total amount overdue. | Upon demand | Payable on all overdue amounts. See Footnote 11. |
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, franchisees will be charged interest and late fees on overdue amounts. The interest charged will be the lesser of the rate Dollar Rent A Car prescribes or the maximum rate allowed by law. In addition to interest, Dollar Rent A Car will charge a late fee of not less than 5% of the total amount overdue.
This means that if a Dollar Rent A Car franchisee has outstanding payments, they will incur both interest charges and a minimum late fee of 5% on the overdue amount. The actual interest rate will depend on what Dollar Rent A Car sets or the legal maximum, whichever is lower.
For a prospective Dollar Rent A Car franchisee, this highlights the importance of managing finances carefully and ensuring timely payments to avoid these additional charges. Failing to do so can lead to increased costs and reduced profitability for the franchise.