What sections of the Dollar Rent A Car Franchise Agreement address the conditions for transfer?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| j. Assignment of | 20.1 | There are no limits on our right to assign the Franchise Agreement. |
| contract by us | ||
| k. "Transfer" by you – defined | 20.2 and 20.3 You shall not Transfer any interest in You, the Agreement, Your Franchised Business, any Location, the Franchised Territory or the franchise. Upon notice of termination by you pursuant to Section 19.1 of your Franchise Agreement, your Franchise Agreement and the franchise it grants to you may not be transferred. | |
| l. Our approval | 21.3 and 21.4 In the event you or any owner proposes to make a Transfer, you shall | |
| of transfer by | give written notice of such proposed Transfer to us. We will either | |
| you | approve or disapprove the proposed Transfer and so notify You. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, Item 17 provides a summary of the conditions for transfer within the Franchise Agreement. Specifically, section 20.1 states that Dollar Rent A Car has no limits on their right to assign the Franchise Agreement.
Sections 20.2 and 20.3 define what constitutes a "Transfer" by the franchisee, stating that the franchisee cannot transfer any interest in themselves, the Agreement, their Franchised Business, any Location, the Franchised Territory, or the franchise itself. Furthermore, if a franchisee provides notice of termination according to Section 19.1 of the Franchise Agreement, the Franchise Agreement and the franchise it grants cannot be transferred.
Sections 21.3 and 21.4 outline the approval process for transfers initiated by the franchisee or any owner. If a transfer is proposed, written notice must be given to Dollar Rent A Car, who will then either approve or disapprove the proposed transfer and notify the franchisee of their decision.