Does Dollar Rent A Car require franchisees to have courtesy vehicles?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
e charged on the deferred portion of the fee. The initial franchise fee is not refundable under any circumstances.
You may be required to have "Courtesy Vehicles" to transport customers to and from their rental vehicles. The type of Courtesy Vehicle may be determined in part by airport and/or governmental requirements, such as those found in the ADA, and must be approved by us. The number and size of Courtesy Vehicles needed will vary based on the size of the market served, the layout of the airport, the location of the rental facility and similar factors. If you have more than one brand, and unless we otherwise authorize, your Courtesy Vehicles cannot be branded with the Marks of more than one brand. That is, unless we otherwise authorize in writing, you must maintain Courtesy Vehicles branded only with the Dollar Marks to transport Dollar rental customers; and if you operate multiple brands under a Multiple Brand Addendum, you must maintain Courtesy Vehicles branded only with the Hertz Marks to transport Hertz customers, Courtesy Vehicles branded only with the Dollar Marks to transport Dollar customers or Courtesy Vehicles branded only with the Thrifty Marks to transport Thrifty customers, depending on the brands you operate from your location.
From time-to-time our Parent or our other affiliates may offer for sale the assets of certain companyowned Vehicle Rental Business locations in conjunction with a Franchise Agreement for the operation of a Dollar Business at such locations. If you purchase one of our Parent's or affiliates' existing businesses, your initial franchise fee may be substantially higher than the initial franchise fee described above. There is a broad range of initial franchise fees for these locations, based upon the factors described above, the revenue generated from the location, the fleet size, the value of the assets, and other factors, all of which will depend upon the particular facts and circumstances related to the location and transaction.
Except as otherwise described above, all fees are payable in a lump sum.
Source: Item 5 — INITIAL FEES (FDD pages 38–39)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car FDD, whether a franchisee is required to have courtesy vehicles depends on the location of the rental business. Specifically, Dollar Rent A Car mandates that Airport Rental Locations must have a Courtesy Vehicle or shuttle bus to transport customers to their rental vehicles. The FDD also states that the type of courtesy vehicle may be determined in part by airport and/or governmental requirements, such as those found in the ADA, and must be approved by Dollar Rent A Car. The number and size of Courtesy Vehicles needed will vary based on the size of the market served, the layout of the airport, the location of the rental facility and similar factors.
The purchase price for Courtesy Vehicles ranges from approximately $55,000 to over $350,000 per vehicle. These vehicles can be financed through local banks, vehicle manufacturers, or other lending institutions, depending on credit and other factors. The FDD cautions that the estimated initial investment chart does not include an estimate for the inventory of Courtesy Vehicles to be used for multiple brands.
If a Dollar Rent A Car franchisee operates more than one brand, they will generally have to use separate Courtesy Vehicles for each brand, unless Dollar Rent A Car authorizes otherwise. Franchisees may not transport rental customers of one brand using a Courtesy Vehicle branded with the Marks of another brand. Additionally, franchisees must not identify or brand any rental vehicle they use interchangeably between their car rental businesses.