Is Dollar Rent A Car permitted to delegate its obligations under the franchise agreement?
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.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, The Hertz Corporation guarantees the obligations of Dollar Rent A Car under its franchise registration and Franchise Agreement. Specifically, The Hertz Corporation, located in Estero, Florida, absolutely and unconditionally guarantees to assume the duties and obligations of Dollar Rent A Car, Inc. 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 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, whichever occurs first. The guarantee specifies that The Hertz Corporation will not be discharged from liability if a claim by a franchisee against Dollar Rent A Car remains outstanding, and waives notice of acceptance.
For a prospective Dollar Rent A Car franchisee, this guarantee from The Hertz Corporation provides an added layer of security. It ensures that even if Dollar Rent A Car, Inc. were to face financial or operational difficulties, The Hertz Corporation is legally bound to fulfill the obligations of the franchise agreement. This could be a significant factor in assessing the stability and reliability of the Dollar Rent A Car franchise system.