Which state's laws govern the Dollar Rent A Car franchise agreement, and what is the exception to this?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The interpretation and enforcement of this Agreement shall be governed by the laws of the state in which the Franchisor's then-current headquarters is located (currently, Florida), except that if any provision of this Agreement would not be enforceable under the laws of the state in which Franchisor's current headquarters is located and the [Hertz / Dollar / Thrifty] Business is located outside of that state, then that provision shall be interpreted and construed under the laws of the state in which the [Hertz / Dollar / Thrifty] Business is located.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, the franchise agreement is generally governed by the laws of the state where Dollar Rent A Car's headquarters is located, which is currently Florida. This means that Florida law will be used to interpret and enforce the agreement.
However, there is an exception to this rule. If any provision of the agreement would not be enforceable under Florida law, and the Dollar Rent A Car business is located outside of Florida, then that specific provision will be interpreted and construed under the laws of the state where the Dollar Rent A Car business is located.
For a prospective franchisee, this means that while most of the franchise agreement will be subject to Florida law, there could be instances where the laws of the state in which they operate their Dollar Rent A Car business will take precedence, particularly if Florida law is less favorable or permissive on a specific issue. This ensures that franchisees are not unduly disadvantaged by a provision that is unenforceable in their state.