Are there any exceptions to the non-compete restrictions for Dollar Rent A Car franchisees or their owners?

According to the 2025 Dollar Rent A Car Franchise Disclosure Document, there are limited exceptions to the non-compete restrictions placed on franchisees and their owners. During the term of the franchise agreement, franchisees and their owners are generally prohibited from engaging in any other vehicle rental business, whether directly or indirectly, unless licensed by Dollar Rent A Car or its affiliates. This includes owning, operating, investing in, or being employed by any competing vehicle rental business.

After the franchise agreement terminates or expires, or if a transfer is permitted, the non-compete restriction continues for twelve months. During this period, franchisees and their owners are still restricted from involvement in any vehicle rental business within a specific territory. This territory includes the area franchised in the agreement, areas within 100 miles of the territory's border, the territory of any other Dollar Rent A Car franchisee, areas within a 10-mile radius of another franchisee's territory, and areas within a 10-mile radius of any Dollar Rent A Car business operated by the company or its affiliates.

However, there is an exception for passive investments. Franchisees and their owners can hold passive investments of less than one percent (1%) of the outstanding equity interest in a publicly-traded company in the business of vehicle rental. This allows for minor financial interests without violating the non-compete agreement. It is important to note that Dollar Rent A Car requires the franchisee's owners to sign a non-compete agreement, ensuring their commitment to these restrictions.