What is the purpose of the General Release required by Dollar Rent A Car?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is our current general release language that we expect to include in a release that a franchisee may sign as part of an approved transfer, upon renewal, or other transaction. We may, in our sole discretion, periodically modify the release.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, Exhibit H provides the sample general release language that Dollar Rent A Car expects to be included in a release that a franchisee may sign as part of an approved transfer, upon renewal, or other transaction. The FDD also states that Dollar Rent A Car may modify the release at its sole discretion periodically.
In essence, this release likely serves to protect Dollar Rent A Car from potential legal claims or liabilities that could arise from the franchisee's operation, transfer, or termination of the franchise agreement. By signing a general release, the franchisee typically agrees to waive their right to sue Dollar Rent A Car for any past, present, or future issues related to the franchise. This is a common practice in franchising, as it provides the franchisor with a degree of legal certainty and helps to avoid costly litigation.
Prospective franchisees should carefully review the specific language of the general release and understand its implications before signing. It is advisable to seek legal counsel to fully comprehend the rights being waived and to assess whether the release is reasonable under the circumstances. Franchisees should also be aware that Dollar Rent A Car retains the right to modify the release periodically, which could potentially broaden the scope of the waiver in the future.