Under what conditions can a Dollar Rent A Car franchisee renew their Franchise Agreement?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | 2.2 | The term of each franchise given in the Franchise Agreement shall |
| franchise term | begin on the Effective Date and end on the expiration date set forth in | |
| Attachment A thereto. | ||
| b. Renewal or | 7.1 | The Franchise Agreement may be renewed, provided (i) you are not |
| extension of the | then in default of any provision of your Franchise Agreement, any | |
| term | amendment thereof or successor thereto, or any other agreement | |
| between you or your affiliates and us or our affiliates, (ii) have not | ||
| failed at any time to make any payment owed to us or our affiliates in | ||
| a timely manner and (iii) have at all times been in compliance or | ||
| material compliance with all the terms and conditions of the Franchise | ||
| Agreement and all such other agreements during the terms thereof, | ||
| you may, at your option, renew the franchise granted to you under the | ||
| Franchise Agreement for such number of successive renewal periods | ||
| ("Renewal Periods"), if any, set forth in Attachment A to your | ||
| Franchise Agreement, provided that in advance of each such renewal, | ||
| you execute a new franchise agreement and pay a renewal fee in the | ||
| 7.1 | amount set forth in Attachment A to the Franchise Agreement. | |
| c. Requirements | In addition to the requirements set forth in "b." above the following | |
| for you to renew | conditions must also be met before and at the time of each renewal: | |
| or extend | (a) you have given us written notice of your election to renew not more | |
| than 12 months nor less than 9 months prior to the end of the term | ||
| (and, as applicable, the end of the Renewal Periods); (b) you have paid | ||
| all amounts owed to us on or before the dates on which they are due; | ||
| (c) you have complied with our then-current qualification and training | ||
| requirements; (d) you have paid our out-of-pocket costs relating to | ||
| your application for a renewal franchise; (e) you and your owners must | ||
| execute a general release, in a form then prescribed by us, of any and | ||
| all claims against us, our Parent and affiliates and their respective | ||
| officers, directors, members, shareholders, and employees, in their | ||
| corporate and individual capacities, including claims arising under the | ||
| Franchise Agreement or under federal, state or local laws, rules, | ||
| regulations or orders; (f) you must refurbish, repair, replace or obtain, | ||
| at your expense, such equipment, computer systems, signs, interior | ||
| and exterior decor items, fixtures, furnishings, supplies and other | ||
| products and materials required for the operation of Your Franchised | ||
| Business as we may reasonably require and must otherwise modernize | ||
| Your Franchised Business to reflect the then-current standards and |
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, a franchisee may be able to renew their Franchise Agreement for the number of successive renewal periods, if any, that are outlined in Attachment A of their Franchise Agreement. To renew, the franchisee must execute a new franchise agreement and pay a renewal fee, the amount of which is detailed in Attachment A of the Franchise Agreement.
However, several conditions must be met both before and at the time of each renewal. The franchisee must provide written notice of their election to renew not more than 12 months nor less than 9 months before the end of the current term. All amounts owed to Dollar Rent A Car must be paid on or before their due dates. The franchisee must also meet Dollar Rent A Car's then-current qualification and training requirements and pay the company's out-of-pocket costs related to the renewal application.
Furthermore, the franchisee and their owners must execute a general release, in a form prescribed by Dollar Rent A Car, releasing any and all claims against Dollar Rent A Car, its parent company and affiliates, and their respective officers, directors, members, shareholders, and employees. The franchisee must also refurbish, repair, replace, or obtain any equipment, computer systems, signs, interior and exterior decor items, fixtures, furnishings, supplies, and other products and materials required for the operation of the franchised business, as reasonably required by Dollar Rent A Car, and must modernize the franchised business to reflect the then-current standards and image of Dollar Rent A Car.
Finally, the franchisee must not be in default of any provision of their Franchise Agreement, any amendment thereof, or any other agreement between the franchisee or their affiliates and Dollar Rent A Car or its affiliates. The franchisee must not have failed at any time to make any payment owed to Dollar Rent A Car or its affiliates in a timely manner and must have been in compliance or material compliance with all the terms and conditions of the Franchise Agreement and all other agreements during the terms thereof.