Under what conditions can Dollar Rent A Car reduce or reclaim my territory?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
3.3. Reversion of Territory. Attachment A to this Agreement describes Locations and/or locations which must be in operation by specified dates described in the attachment. Your failure to meet the schedule for opening Locations and/or locations constitutes grounds for termination of this Agreement as described in Section 19.4(c). Instead of termination, We may, at Our option, reduce, modify or revise and reclaim the Territory without notice to You except for the area within a three (3) mile radius of any Location then being operated by You pursuant to this Agreement. We may determine, in Our sole discretion, that one or more additional Locations and/or locations must be opened by You in the Territory to serve customer demand. In the event We determine that You must open an additional location from which You must operate Your Franchised Business in the Territory, We will send You written notice setting forth that portion of the Territory in which You must open and operate a Location. You must provide Us with written notice of Your intent to open such Location and/or location within sixty (60) days from the date of Our written notice and commence to operate Your Franchised Business from such Location and/or location no later than one hundred eighty (180) days from the date of Our written notice. If You fail to timely provide Us written notice of Your intent to open a Location and/or location, or You fail to timely commence operations of Your Franchised Business at such Location and/or location, in addition to any other remedies available to Us under this Agreement or otherwise, at Our option, that portion of the Territory shall revert to Us without notice and We may grant a franchise to others to operate a Franchised Business or We or Our Affiliates may operate a Franchised Business in the reverted portion of the Territory, including if such Franchised Business operates within a three (3) mile radius of one of your Locations. As described in Attachment A, You will be considered to be operating at a Location and/or location if You are conducting a Vehicle Rental Business from such Location and/or location.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, Dollar Rent A Car has the option to reduce, modify, revise, or reclaim a franchisee's territory under specific circumstances. One primary condition is the franchisee's failure to meet the schedule for opening locations as outlined in Attachment A of the Franchise Agreement. If a franchisee does not adhere to the agreed-upon timeline for establishing new locations, it can lead to a reversion of territory. However, the area within a three-mile radius of any location already operated by the franchisee remains protected.
Dollar Rent A Car may also determine that additional locations are necessary to meet customer demand within the franchisee's territory. In such cases, Dollar Rent A Car will provide written notice to the franchisee, specifying the area where a new location must be opened and operated. The franchisee then has 60 days to notify Dollar Rent A Car of their intent to open the location and 180 days to commence operations.
If the franchisee fails to provide timely notice of their intent or fails to begin operations within the specified timeframe, Dollar Rent A Car has the option to reclaim that portion of the territory without notice. Dollar Rent A Car can then grant a franchise to another operator or operate a franchise themselves in the reverted territory, even within a three-mile radius of the original franchisee's locations. This underscores the importance of adhering to the development schedule and responding promptly to any notices from Dollar Rent A Car regarding the need for additional locations.