Is Dollar Rent A Car required to share any rebates they receive from suppliers with franchisees?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.25. Rebates.
We and/or Our Affiliates may and are entitled to earn revenue from and to receive and retain for Our and/or their own credit, without accounting to or sharing with You, all payments, profits, rebates, discounts, bonuses, advantages, goods, commissions, incentives, or other allowances or benefits whether by way of cash, kind or credit (collectively, "Rebates") which We and/or Our Affiliates may earn or be provided by sources, manufacturers or suppliers whether or not on account of purchases made by Us or an Affiliate, for its own account or for the account of You, or whether or not related, directly or indirectly, to the sale or leasing of products or services to You or any other franchisees.
You acknowledge that We and/or Our Affiliates owe no fiduciary, trust or other duty to You and are under no such duty to account or disclose to You for such Rebates, and may retain such Rebates entirely for Our and/or their own account.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, Dollar Rent A Car and its affiliates are entitled to retain all rebates, discounts, and other benefits they receive from suppliers without sharing them with franchisees. This includes any payments, profits, rebates, discounts, bonuses, advantages, goods, commissions, incentives, or other allowances, regardless of whether these are related to purchases made by Dollar Rent A Car or its affiliates for their own account or for the account of the franchisee.
This means that a Dollar Rent A Car franchisee will not be entitled to a portion of any rebates, discounts, or other financial benefits that Dollar Rent A Car receives from its suppliers. These benefits are retained entirely by Dollar Rent A Car and its affiliates. The franchisee has no right to demand an accounting or disclosure of these rebates.
This arrangement is common in many franchise systems, where the franchisor leverages its size and purchasing power to negotiate favorable terms with suppliers. While the franchisee may indirectly benefit from these arrangements through potentially lower costs or improved services, they are not entitled to a direct share of the rebates. Prospective franchisees should consider this when evaluating the overall financial opportunity and potential profitability of a Dollar Rent A Car franchise.