How is the Dollar Rent A Car transfer fee calculated?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
y inspection conducted and the actual cost of any testing undertaken. See Footnote 12. |
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Liquidated Damages for Non- Compliance | $100 per day that the breach persists; additional $5,000 if violation still persists after ninety (90) days. | If incurred | In addition to other remedies available to us. |
| Renewal Fee | $5,000 to $25,000 | Upon renewal | |
| Transfer Fee | Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you. | Upon transfer of Your Franchised Business | In our discretion, we may designate such a transfer fee payable by the transferee. See Footnote 13. |
| Holdover | The then-applicable Franchise Fee and other such fees and assessments being charged by us. | If applicable, payable within 10 days after receipt of the Statement, which is typically received on the 5th business day of each month for the preceding month or as required by us | See Footnote 14. |
| Fees 14 | |||
| Security | Will vary under the circumstances | Upon demand | See Footnote 15. |
| Deposit 15 | |||
| Early Termination Fee – Liquidated Damages 16 | Will vary under the circumstances | When you provide your Notice of Termination | See Footnote 16. |
| Audit Fee 17 | Cost of the audit if we discover you have underreported by two percent (2%) or more or we discover you have failed to comply with any provision of the Franchise Agreement or any other agreement between you and us or our affiliate(s). | Upon demand | If the audit or any other inspection should reveal that any payments to us have been underpaid, then you shall immediately pay to us the amount of the underpayment plus interest at five percent (5%), or, if less, the maximum rate allowed by applicable law. |
| Value Proposition Services 18 | $0 - $150,000 depending on your selection of optional products and services offerings | As billed | The Value Proposition products and services are offered to our franchisees on an optional men |
Source: Item 6 — OTHER FEES (FDD pages 39–46)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the transfer fee is 5% of the average annual gross sales for the three years immediately preceding the transfer. This fee is paid when a franchisee transfers their Dollar Rent A Car business to a new owner. The franchisor, Dollar Rent A Car, has the discretion to designate whether the transfer fee is payable by the seller (the current franchisee) or the buyer (the transferee).
For a prospective franchisee looking to buy an existing Dollar Rent A Car franchise, it's important to factor this potential transfer fee into the purchase price. For example, if the average annual gross sales for the previous three years were $500,000, the transfer fee would be $25,000 (5% of $500,000). This can be a significant cost, so understanding who is responsible for paying it is crucial during negotiations.
It is also important to note that the monthly franchise fee, other fees, and other terms and conditions of the Franchise Agreement, such as its duration, may be different for a transferee of an existing Dollar Rent A Car business compared to a new franchisee. Therefore, a prospective franchisee should carefully review all aspects of the Franchise Agreement and seek clarification from Dollar Rent A Car on any points of concern before finalizing the transfer.