Who is responsible for any breach of the Dollar Rent A Car agreement by an employee or agent of the franchisee?

Based on the 2025 Dollar Rent A Car Franchise Disclosure Document, the franchisee is responsible for implementing a training program for all employees to ensure they operate the franchised business in compliance with Dollar Rent A Car's standards and procedures. This implies that the franchisee bears the responsibility for the actions of their employees.

Additionally, the document includes a Confidentiality Agreement that managerial employees must sign. This agreement protects Dollar Rent A Car's confidential information. If an employee violates this agreement, it could cause irreparable harm, and Dollar Rent A Car can seek an injunction to stop the violation. The agreement also states that both Dollar Rent A Car and the franchisee are intended third-party beneficiaries and can independently enforce the agreement.

While the FDD does not explicitly state that the franchisee is responsible for breaches caused by their employees or agents, the requirement for employee training and the existence of confidentiality agreements suggest that franchisees have a duty to ensure their staff complies with the franchise agreement and protects Dollar Rent A Car's interests. A prospective franchisee should seek clarification from Dollar Rent A Car regarding the extent of their liability for employee actions and what specific measures they must take to prevent breaches.