What is the purpose of the 'Summary' column in the Dollar Rent A Car franchise agreement table?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
e impact on your continued financial | | | stability or operations; or fail to maintain in Your Franchised | | | Section in | | | Franchise |
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| (i) the minimum number of vehicles required for each calendar month during the term of the Franchise Agreement; or (ii) the minimum average number of Vehicles for either 6 consecutive months or 9 months out of any 12 consecutive months. | ||
| i. Your obligations on termination/non renewal | 19.6 | Upon termination or non-renewal, you must: immediately pay all franchise fees, reservations fees, interest, late fees and other charges to us or to our affiliates or franchisees of us of our affiliates; return all copies of the Operations Guide; cancel all assumed name registrations or other registrations relating to the use of, or including, the Marks; return to us or destroy, according to our direction, all literature, signs, unused Rental Agreements or other forms used in Your Franchised Business, promotional material and any other material identifying you with the Franchised System or containing the Marks and certify in writing the destruction of such materials; removal of all signs, including directional signs, and detailing and trade dress displaying the Franchised System name, logo, or symbol that implies a connection to the Franchised System, from all buildings and vehicles; stop all use of the Marks or any colorable imitation of them in any business; continue to comply with the covenant not to compete of the Franchise Agreement; execute all documents necessary to effect the transfer of all telephone numbers and directory listings with which any of the Marks are associated and notify your telephone company and all listing agencies of the termination of your right to use any telephone numbers, listings and yellow pages advertising relating to Your Franchised Business; immediately cease identifying you or Your Franchised Business as a Franchised Business or as formerly associated with the Franchised System; execute, at our request, all documents necessary to assign to Franchisor or its designees the leasehold interests in real property at which Your Franchised Business is operated and all airport concession agreements covering airports or other sites at which Your Franchised Business is operated; notify lessors of real estate and airport entities/representatives that the Franchise Agreement has been terminated and that Franchisor or its designee has the right to succeed to your status as tenant and airport concessionaire; allow us, at our option, to audit Your Franchised Business; and immediately advise us of all inventory or other items bearing the Marks. |
| j. Assignment of | 20.1 | There are no limits on our right to assign the Franchise Agreement. |
| contract by us | ||
| k. "Transfer" by you – defined | 20.2 and 20.3 You shall not Transfer any interest in You, the Agreement, Your Franchised Business, any Location, the Franchised Territory or the franchise. Upon notice of termination by you pursuant to Section 19.1 of your Franchise Agreement, your Franchise Agreement and the franchise it grants to you may not be transferred. | |
| l. Our approval | 21.3 and 21.4 In the event you or any owner proposes to make a Transfer, you shall | |
| of transfer by | give written notice of such proposed Transfer to us. We will either | |
| you | approve or disapprove the proposed Transfer and so notify You. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, the 'Summary' column in the franchise agreement table provides a brief overview of the corresponding provision in the franchise agreement. This allows prospective franchisees to quickly understand the key terms and conditions of each section without having to read the entire legal document. The summary is intended to provide a simplified explanation of the more detailed and legally precise language found in the full agreement.
For example, the table includes a summary of the franchisee's obligations upon termination or non-renewal of the agreement, outlining the required actions such as paying outstanding fees, returning materials, ceasing use of trademarks, and cooperating with the transfer of phone numbers and property leases. Similarly, the table summarizes Dollar Rent A Car's rights regarding assignment of the franchise agreement, stating that there are no limits on their right to assign the agreement. The table also summarizes the conditions under which a franchisee may transfer their interest in the franchise, noting that transfers are generally restricted and subject to the franchisor's approval.
It is important to note that while the 'Summary' column offers a convenient overview, prospective Dollar Rent A Car franchisees should not rely solely on these summaries. The full text of the franchise agreement should be carefully reviewed and understood, ideally with the assistance of legal counsel, to ensure a complete understanding of all rights, obligations, and potential liabilities. The summaries are for informational purposes, but the actual legal terms are contained in the referenced sections of the agreement.