Under what conditions might Dollar Rent A Car charge a transfer fee?
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 decision to charge this fee is at Dollar Rent A Car's discretion.
The transfer fee is calculated as five percent of the average annual gross sales for the three years immediately preceding the transfer. To illustrate, in 2024, one transfer fee was charged, amounting to $137,960.
This fee covers the costs and administrative work that Dollar Rent A Car incurs when a franchise changes ownership. It is important to note that the initial franchise fee, or transfer fee if applicable, is not refundable under any circumstances.