How is the transfer fee calculated for a Dollar Rent A Car franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
rs described above. For existing franchisees, we estimate that the initial franchise fee may be as low as $25,000.
If you are a transferee or an existing Franchised Business, we may, in our discretion, charge a transfer fee under certain circumstances. The transfer fee is calculated as Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you. In 2024, a transfer fee of $137,960 was charged in connection with 1 transfer.
The initial franchise fee (or transfer fee, if applicable) is payable in a lump sum, or in our discretion, we may allow a portion of the fee to be paid in installments over a period not to exceed three years. Interest will not
Source: Item 5 — INITIAL FEES (FDD pages 38–39)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, a transfer fee may be charged if you are a transferee or an existing Franchised Business. The transfer fee is calculated as five percent (5%) of the average annual gross sales for the three (3) years immediately preceding the transfer.
In 2024, Dollar Rent A Car charged a transfer fee of $137,960 in connection with one transfer. This gives prospective franchisees an idea of the potential cost of transferring a Dollar Rent A Car franchise, though this amount can vary significantly depending on the gross sales of the specific franchise location being transferred.
The transfer fee (or initial franchise fee) is payable in a lump sum. However, Dollar Rent A Car may allow a portion of the fee to be paid in installments over a period not exceeding three years, without interest. The initial franchise fee is non-refundable under any circumstances.