When is the transfer fee waived during a Dollar Rent A Car franchise transfer?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
involves multiple Franchised Businesses or because the proposed transferee is an existing franchisee pursuant to a franchise agreement with Us or Our Affiliates), We determine, in Our sole discretion, that We will allow for the ownership and operation of multiple Vehicle Rental Businesses by the proposed transferee;
- (g) The proposed transferee executes Our then-current form of franchise agreement, granting such transferee the right to use the System in the conduct of a Franchised Business in the Franchised Territory and/or the Location or other Locations in the Franchised Territory that We approve, upon the same terms and conditions then being offered by Us under such System franchise agreement, except as to any initial fee, franchise fee, Transfer fee and any other fees and assessments to be paid by such transferee to Us under such System franchise agreement, as well as the length of the term thereof, all of which shall remain within Our sole discretion; provided, however, that no transfer fee shall be payable if the proposed transferee is an Owner as indicated on Attachment C to this Agreement or any amendment to Attachment C approved by Us prior to the Transfer;
- (h) The proposed transferee executes or causes to be executed any forms of agreement ancillary to the System franchise agreement, including any personal guaranty;
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 transfer fee is waived under specific conditions related to family transfers and existing owners. Specifically, if the transfer of ownership interests is made by individual owners to a spouse, parent, or child, Dollar Rent A Car will not collect any transfer fee, provided the transferee meets the background screening criteria.
Additionally, no transfer fee is payable if the proposed transferee is already an owner as indicated on Attachment C to the Franchise Agreement or any amendment to Attachment C approved by Dollar Rent A Car prior to the transfer. This provision encourages transfers within the existing ownership structure without incurring additional fees.
These stipulations provide some flexibility for Dollar Rent A Car franchisees in managing ownership transitions within their families or among existing owners, potentially easing the financial burden associated with such transfers. However, it's important to note that all other conditions for the transfer, as outlined in Section 21 of the franchise agreement, must still be met, including compliance with the agreement, payment of outstanding dues, and execution of required agreements by the transferee.