What section of the Dollar Rent A Car Franchise Agreement outlines the renewal fee?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
THE FRANCHISE RELATIONSHIP
FRANCHISE AGREEMENT
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | 2.2 | The term of each franchise given in the Franchise Agreement shall |
| franchise term | begin on the Effective Date and end on the expiration date set forth in | |
| Attachment A thereto. | ||
| b. Renewal or | 7.1 | The Franchise Agreement may be renewed, provided (i) you are not |
| extension of the | then in default of any provision of your Franchise Agreement, any | |
| term | amendment thereof or successor thereto, or any other agreement | |
| between you or your affiliates and us or our affiliates, (ii) have not | ||
| failed at any time to make any payment owed to us or our affiliates in | ||
| a timely manner and (iii) have at all times been in compliance or | ||
| material compliance with all the terms and conditions of the Franchise | ||
| Agreement and all such other agreements during the terms thereof, | ||
| you may, at your option, renew the franchise granted to you under the | ||
| Franchise Agreement for such number of successive renewal periods | ||
| ("Renewal Periods"), if any, set forth in Attachment A to your | ||
| Franchise Agreement, provided that in advance of each such renewal, | ||
| you execute a new franchise agreement and pay a renewal fee in the | ||
| 7.1 | amount set forth in Attachment A to the Franchise Agreement. | |
| c. Requirements | In addition to the requirements set forth in "b." above the following | |
| for you to renew | conditions must also be met before and at the time of each renewal: | |
| or extend | (a) you have given us written notice of your election to renew not more | |
| than 12 months nor less than 9 months prior to the end of the term | ||
| (and, as applicable, the end of the Renewal Periods); (b) you have paid | ||
| all amounts owed to us on or before the dates on which they are due; | ||
| (c) you have complied with our then-current qualification and training | ||
| requirements; (d) you have paid our out-of-pocket costs relating to | ||
| your application for a renewal franchise; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, section 7.1 of the Franchise Agreement outlines the renewal fee. Specifically, Item 17 details that the Franchise Agreement may be renewed if the franchisee is not in default, has consistently made payments on time, and has complied with the terms of the agreement. To renew the franchise, the franchisee must execute a new franchise agreement and pay a renewal fee, the amount of which is detailed in Attachment A to the Franchise Agreement.
To initiate a renewal, the franchisee must provide written notice of their intent to renew no more than 12 months and no less than 9 months before the end of the current term. Additionally, all outstanding amounts owed to Dollar Rent A Car must be paid by their due dates. The franchisee must also meet the then-current qualification and training requirements set by Dollar Rent A Car.
Furthermore, the franchisee is responsible for covering Dollar Rent A Car's out-of-pocket expenses related to the renewal application. Both the franchisee and their owners must sign a general release, in a form prescribed by Dollar Rent A Car, releasing any claims against Dollar Rent A Car, its parent company, affiliates, and their respective officers, directors, members, shareholders, and employees. The franchisee is also responsible for refurbishing, repairing, or replacing any equipment, computer systems, signs, and other items required for operating the franchised business.