What is the range of Travel Industry Commissions that Dollar Rent A Car franchisees may be charged?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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, franchisees may be charged Travel Industry Commissions ranging from 0% to 30% of gross rental charges. These commissions are payable on the 10th day after the franchisee receives the statement for the preceding month.
Dollar Rent A Car negotiates these commission rates with travel agents, airlines, and other members of the travel industry. The actual rates may vary depending on the specific agreements Dollar Rent A Car has in place with these third parties.
For a prospective franchisee, this means that a portion of their gross rental charges could be allocated to these commissions. It is important to understand that these rates are not fixed and can fluctuate based on Dollar Rent A Car's negotiations with travel industry members. Franchisees should factor this potential cost into their financial projections and business planning.
Understanding the specifics of these negotiated rates and how they might impact profitability is a crucial aspect of due diligence for any potential Dollar Rent A Car franchisee. Franchisees should regularly review their statements to monitor these charges and understand how they affect their overall revenue.