What does the Release agreement constitute for Dollar Rent A Car?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
P.O. Box 30213 Lansing, Michigan 48909 (517)335-7571 | WASHINGTON Department of Financial Institutions Division of Securities 150 Israel Road SW Tumwater, Washington 98501 (360)902-8760 |
ATTACHMENT F TO FRANCHISE AGREEMENT FORM OF CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (OWNERS)
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
(Owners)
THIS CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (this "Agreement") is entered into on [DATE] (the "Effective Date"), by and between [HERTZ SYSTEM, INC. / DOLLAR RENT A CAR, INC. / THRIFTY RENT-A-CAR SYSTEM, LLC], a [Delaware/Oklahoma] [corporation / limited liability company] with its principal place of business at 8501 Williams Road, Estero, Florida 33928 (the "Franchisor") and, [FRANCHISEE], a [state of organization] [corporation / limited liability company / limited partnership] with its principal place of business at [Franchisee address] (the "Franchisee") and [Owner name], a person having a direct or indirect legal or beneficial interest in Franchisee, whose address is [Owner Address] ("Owner"). All capitalized terms not otherwise defined in this Agreement shall have the meaning ascribed to such terms in the Franchise Agreement.
RECITALS
- A. The Franchisor, as a result of a significant expenditure of time, skill, effort, and money, has developed and owns a proprietary system ("System") for the business of renting vehicles ("[Hertz / Dollar / Thrifty] Business") and has the exclusive right to grant franchises to use the System to operate [Hertz / Dollar / Thrifty] Businesses;
- B. Franchisor and Franchisee have executed a [Hertz System, Inc. / Dollar Rent A Car, Inc. / Thrifty Rent-A-Car System, LLC] Franchise Agreement (the "Franchise Agreement") granting Franchisee the right to conduct and operate a [Hertz / Dollar / Thrifty] Business in the Territory and at the Locations set forth on Attachment A of the Franchise Agreement;
- C. Owner, by virtue of his or her ownership position with Franchisee, will gain access to certain of Franchisor's Confidential Information, as defined herein, and must agree therefore to be bound by the confidentiality and non-compete obligations contained herein; and
- D. The Franchisor is willing to have Franchisee disclose such Confidential Information to Owner, subject to the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of Franchisee's providing such Confidential Information to Owner, the parties agree as follows:
CONFIDENTIALITY
- For purposes of this Agreement, "Confidential Information" means any and all information, knowledge, or know-how (including, but not limited to, data, reports, analyses, compilations, studies, customer information, financial information, marketing, ideas, concepts, business plans, proposals, operating manuals, bulletins, records and other materials) relating to the Franchisor (and its affiliates), Franchisee, the System, and the [Hertz / Dollar / Thrifty] Business which may be communicated to Owner prior to, on, or after the Effective Date of this Agreement, whether communicated in writing, orally,
electronically, by inspection, or by sample, exhibit, demonstration, or by other means. The foregoing list of Confidential Information is illustrative only and does not necessarily include all matters considered confidential by the Franchisor.
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- Owner shall use the Confidential Information disclosed to it solely for the purpose of fulfillment of Owner's responsibilities on behalf of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Confidentiality and Non-Competition Agreement for owners outlines the terms and conditions under which Dollar Rent A Car is willing to allow the franchisee to disclose confidential information to the owner. This agreement ensures that the owner, who has a vested interest in the franchisee's business, is bound by confidentiality and non-compete obligations, protecting Dollar Rent A Car's proprietary information and business interests. The agreement specifies that access to confidential information is contingent upon the owner's adherence to these terms. This is a standard practice in franchising to protect the franchisor's business model and trade secrets.
The Confidentiality Agreement for managerial employees serves a similar purpose, extending the protection of Dollar Rent A Car's confidential information to those employees who, by virtue of their position, will have access to it. This agreement is between Dollar Rent A Car, the franchisee, and the managerial employee, ensuring that the employee is legally bound to maintain the confidentiality of the disclosed information. The agreement also includes clauses addressing potential violations, remedies, and the enforceability of its provisions, further safeguarding Dollar Rent A Car's interests.
Both agreements emphasize that any violation could cause irreparable harm, allowing Dollar Rent A Car and the franchisee to seek injunctive relief to prevent or halt such violations. The agreements also clarify that they are not employment agreements and are governed by the laws of the state where Dollar Rent A Car's headquarters is located, unless the Dollar Rent A Car business is located in a different state, in which case the laws of that state may apply to certain provisions. These measures are typical in franchise agreements to protect the franchisor's system and maintain uniformity across the franchise network.