Under what circumstances can Dollar Rent A Car terminate a Franchise Agreement for cause?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Franchise | Summary |
|---|---|---|
| f. Termination | 19.2, 19.3, | We have the right to terminate your Franchise Agreement for cause. |
| by us with cause | and 19.4 | |
| g. "Cause" defined –curable defaults | 19.4 | Your Franchise Agreement may be terminated if you: fail to pay us or our affiliate any monies due under the Franchise Agreement or any other agreement with us or our affiliates within 30 days after delivery of notice to you; fail to maintain the required insurance coverage and you do not correct this failure within 10 days after delivery of notice to you; fail to comply with Section 12.22 of the Franchise Agreement regarding your pricin |
| See Franchise Agreement summary. In addition, under the Multiple Brand Franchising Addendum, we can terminate if there is an event of default under the Hertz, Dollar and/or Thrifty franchise agreement(s) or if you give notice to terminate the Hertz, | ||
| See Franchise Agreement summary. In addition, under the | ||
| Multiple Brand Franchising Addendum, you will be given at least | ||
| 20 days from the date of delivery of written notice to cure any | ||
| breaches, to the satisfaction of Hertz, Dollar and/or Thrifty, if (i) | ||
| you combine, display or use the Hertz Marks, Dollar Marks and/or | ||
| Thrifty Marks in violation of the Hertz Franchise Agreement, the | ||
| Dollar Franchise Agreement, the Thrifty Franchise Agreement | ||
| and/or the Multiple Brand Franchising Addendum (as applicable); |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, Dollar Rent A Car has the right to terminate the Franchise Agreement for cause. The Franchise Agreement may be terminated if the franchisee fails to pay Dollar Rent A Car or its affiliates any monies due under the Franchise Agreement or any other agreement with them within 30 days after delivery of notice. Termination can also occur if the franchisee fails to maintain the required insurance coverage and does not correct this failure within 10 days after delivery of notice.
Additional causes for termination involve non-compliance with specific sections of the Franchise Agreement, such as Section 12.22 regarding pricing. Furthermore, Dollar Rent A Car can terminate the agreement if there is an event of default under the Hertz, Dollar, and/or Thrifty franchise agreement(s), or if the franchisee gives notice to terminate the Hertz, Dollar, and/or Thrifty franchise agreement(s).
Other conditions that could lead to termination include, but are not limited to: the expiration and violation of Section 24.1(b) of the Franchise Agreement; death, disability, or dissolution of the franchisee or an owner; discontinuing active conduct of the Franchised Business for more than 5 consecutive days (unless due to specific uncontrollable events); material misrepresentations or omissions in information provided to Dollar Rent A Car; failure to begin or continue operating the Franchised Business at specified locations; underreporting Gross Receipts by more than 3%; failure to complete the initial training program; failure to comply with procedures for acquiring an Airport Rental Location; certain criminal convictions of the franchisee or any owner; engaging in fraudulent, unfair, or deceptive practices; violating the exclusive dealing covenant; attempts to revoke any guarantee; payment defaults under any guaranty; repeated failures to comply with the Franchise Agreement; unauthorized advertising; and a material decrease in vehicle financing capacity, liquidity, or net worth that adversely impacts financial stability or operations.
Under the Multiple Brand Franchising Addendum, Dollar Rent A Car will give the franchisee at least 20 days from the date of delivery of written notice to cure certain breaches. These breaches include violations related to combining, displaying, or using the Hertz, Dollar, and/or Thrifty Marks in violation of the respective franchise agreements or the Multiple Brand Franchising Addendum, as well as non-compliance with any provision of the Multiple Brand Franchising Addendum.