What are 'Net Proceeds' in the context of Dollar Rent A Car travel vouchers?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Parent issues travel vouchers for use by customers for payment of car rental charges.
Vouchers are typically issued by travel agents or other travel industry members who collect the face amount of the voucher from the customer and send the proceeds to our Parent, less their applicable travel agent or other commission (the "Net Proceeds").
The vouchers are issued for rentals from a franchisee or from our Parent and the Net Proceeds for all vouchers are remitted to our Parent.
When a customer presents a voucher to a franchisee as payment for a rental at franchisee's location, the voucher will be processed by us.
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, 'Net Proceeds' refers to the amount remitted to Dollar Rent A Car's Parent company after a travel agent or other travel industry member collects the face amount of a travel voucher from a customer and deducts their commission. In other words, it's the face value of the voucher minus the commission retained by the travel agent.
For a Dollar Rent A Car franchisee, this means that when a customer uses a travel voucher for a rental, the franchisee will not receive the full face value of the voucher. Instead, Dollar Rent A Car will process the voucher and remit the 'Net Proceeds' to its Parent company. The franchisee will then receive payment from Dollar Rent A Car for the 'Net Proceeds' less a 5% service fee.
This arrangement has a direct impact on the franchisee's revenue and cash flow. The franchisee must account for the deduction of both the travel agent's commission (which reduces the 'Net Proceeds') and the additional 5% service fee charged by Dollar Rent A Car. The franchisee receives less than the voucher's face value, which affects their overall revenue from voucher-based rentals. The franchisee should factor in these deductions when forecasting revenue and managing their finances.