When is the transfer fee due for a Dollar Rent A Car franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
If you transfer Your Franchised Business, you may be required to pay a transfer fee, which we have the right to require in our sole discretion, in an amount equal to five percent (5%) of the average annual gross sales for the three (3) years immediately preceding the transfer.
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 specific due date for the transfer fee is not listed in the provided excerpts. The excerpts do mention that if a franchisee transfers their franchised business, Dollar Rent A Car has the right to require a transfer fee at their discretion. This fee is calculated as five percent of the average annual gross sales for the three years immediately preceding the transfer.
However, the FDD excerpts do not specify when this transfer fee must be paid to Dollar Rent A Car. Without this information, prospective franchisees should inquire about the exact payment terms and schedule for the transfer fee during the due diligence process.
Understanding the timing of this payment is crucial for managing the financial aspects of transferring a Dollar Rent A Car franchise. It is important to clarify this with the franchisor to avoid any potential misunderstandings or financial strain during the transfer process.