What can Dollar Rent A Car seek in the event of unfair competition by the franchisee?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
NON-COMPETITION
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- In-Term Non-Compete. During the term of this Agreement, Owner shall not, directly or indirectly, for Owner's own or others' benefit, alone, or in conjunction with any other person or entity: (1) own, engage in, be employed by, advise, assist, lease or sublease to, invest in, franchise, lend money to, agree to sell or sell all or substantially all of Owner's interest in the assets of the [Hertz / Dollar / Thrifty] Business, or have any interest in, whether financial or otherwise, any other Vehicle Rental Business, except under license from Franchisor or its affiliates, or (2) divert or attempt to divert any actual or prospective business or customer of the [Hertz / Dollar / Thrifty] Business, or of any other [Hertz / Dollar / Thrifty] Business, to any competitor, by direct or indirect inducement or otherwise.
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- Post-Term Non-Compete. For a period of twelve (12) months after (i) a Transfer permitted by Section 21 of the Franchise Agreement, or (ii) the date of termination or expiration of the Franchise Agreement for any reason (including, without limitation, due to nonrenewal) or the date on which Owner ceases to be an Owner in Franchisee, whichever is later, Owner shall not directly or indirectly, for Owner or for any other person or entity, alone or through or on behalf of others:
Own, engage in, be employed by, advise, assist, lease or sublease to, invest in, franchise, lend money to, agree to sell or sell all or substantially all of Owner's interest in the assets of the [Hertz / Dollar / Thrifty] Business to, or have any other interest in, whether financial or otherwise, any Vehicle Rental Business, except under license from Franchisor or its affiliates:
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, during the term of the agreement, the owner of the franchise is prohibited from engaging in any activity that competes with the Dollar Rent A Car business. This includes owning, engaging in, or being employed by any other vehicle rental business, unless licensed by Dollar Rent A Car or its affiliates.
Specifically, the franchisee cannot divert or attempt to divert any actual or prospective business or customer of Dollar Rent A Car to a competitor, whether through direct or indirect means. This restriction applies not only to the franchisee's own Dollar Rent A Car business but also to any other Dollar Rent A Car business.
After the franchise agreement terminates, the owner is restricted from involvement with another Vehicle Rental Business for twelve months. This includes being an owner, employee, advisor, investor, or lender to another Vehicle Rental Business. This non-compete period begins after a transfer permitted by Section 21 of the Franchise Agreement, or the date of termination or expiration of the Franchise Agreement for any reason, or the date on which the Owner ceases to be an Owner in Franchisee, whichever is later.