What is the name of the parent company that guarantees Dollar Rent A Car's obligations?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, The Hertz Corporation, a Delaware corporation (the "Guarantor"), located at 8501 Williams Road, Estero, Florida 33928, absolutely and unconditionally guarantees to assume the duties and obligations of Dollar Rent A Car, Inc., an Oklahoma corporation, located at 8501 Williams Road, Estero, Florida 33928 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
The Guarantor signs this guarantee at Estero, Florida on __________________. March 20, 2025 | 09:07:08 PDT
Guarantor:
The Hertz Corporation
Name: Mark E. Johnson
By:__________________________
Title: Senior Vice President & Treasurer
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 100–101)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, The Hertz Corporation guarantees the obligations of Dollar Rent A Car, Inc. under its franchise registration in each state where the franchise is registered and under its Franchise Agreement. This guarantee remains in effect until all obligations of Dollar Rent A Car under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Dollar Rent A Car to its franchisees under the Franchise Agreement has been completely discharged. The guarantor, The Hertz Corporation, will not be discharged from liability if a claim by a franchisee against Dollar Rent A Car remains outstanding. The Hertz Corporation, located at 8501 Williams Road, Estero, Florida 33928, signed this guarantee on March 20, 2025.
For a prospective franchisee, this guarantee provides a level of financial security. It means that The Hertz Corporation is legally bound to ensure that Dollar Rent A Car meets its obligations to its franchisees. This could include fulfilling promises made in the Franchise Agreement, such as providing support, training, or resources. If Dollar Rent A Car were to fail to meet these obligations, franchisees could potentially seek recourse from The Hertz Corporation.
However, it is important to note that the guarantee does not cover every possible scenario. It specifically applies to obligations under the franchise registration and the Franchise Agreement. It is crucial for potential franchisees to carefully review the Franchise Agreement and understand the full scope of the obligations that are guaranteed by The Hertz Corporation. Additionally, franchisees should be aware that the guarantee is binding on The Hertz Corporation and its successors and assigns, providing continued protection even if the ownership of The Hertz Corporation changes.
This guarantee offers a safety net for franchisees, assuring them that a larger, more established company stands behind Dollar Rent A Car's commitments. While it does not eliminate all risks associated with franchising, it can provide peace of mind and a greater sense of security for those investing in a Dollar Rent A Car franchise.