What is the range of the Reservation Fee for a Dollar Rent A Car franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
as otherwise described above, all fees are payable in a lump sum.
ITEM 6 OTHER FEES
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Franchise Fee 2 | Ranges from 6% to 9% of Gross Receipts derived from Your Franchised Business, subject to a minimum annual amount determined by us based on various factors including, without limitation, market size, and number and type of locations. | Payable within 10 days after receipt of the statement of payment obligations ("Statement") which is typically received on the 5th business day of each month for the preceding month | See Footnote 2. |
| Program | Will vary. | As required by us. | Amounts will vary |
| Assessments 3 | depending on the Program. | ||
| Insurance | Cost of procuring insurance for you. | As billed | |
| Reservation Charges 4 | Fee is assessed for each reservation made through our Reservations System. The reservation charge is estimated to range from $3.84 to $6.30 per passenger car reservation. | Payable on the 10th day after receipt of the statement for the preceding month | Charge will vary based on aggregate estimated costs incurred in operating reservations facilities divided by estimated number of reservations to be made. |
| Travel Industry Commissions 5 | 0-30% of gross rental charges | Payable on the 10th day after receipt of the statement for the preceding month | We negotiate rates with travel agents, airlines and other travel industry members; these rates will vary. |
| Travel Vouchers 6 | Service fee presently equal to 5% of Net Proceeds of the voucher | Automatically deducted from payment to you by us for vouchers accepted as payment from customers | See Footnote 6. |
| EDI Cost 7 | $6.50 for TSD and $1.50 for OKC Administration for a total of $8.00 per reservation | As billed. | Insurance Replacement reservations charge and processing fee. See Footnote 7. |
| Rental Processing Fee | 2.5% for Auto Feed; 4.6% for manual feed for Insurance and Service Replacement customers | As billed. | Processing fee for insurance and service replacement customers. |
| Guaranteed Charge Cards - Service Fees 8 | Currently between 1% and 5% of gross rental charges. | Automatically deducted from payment to you for gross rental charges less fees deducted by card i |
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, a franchisee will be assessed a fee for each reservation made through Dollar Rent A Car's reservation system. This reservation charge is estimated to range from $3.84 to $6.30 per passenger car reservation.
The reservation fee is payable on the 10th day after the franchisee receives the statement for the preceding month. The amount of the charge will vary based on the aggregate estimated costs incurred in operating reservation facilities divided by the estimated number of reservations to be made.
As the fee is dependent on the costs of operating the reservation facilities and the number of reservations, this fee could fluctuate. It is important to note that the fee is per passenger car reservation, so franchisees should factor this into their financial projections based on the anticipated volume of reservations through the system.