Does Dollar Rent A Car use financial instruments for speculative or trading purposes?

The 2025 Franchise Disclosure Document for Dollar Rent A Car provides information on the company's financial instruments but does not explicitly state whether these instruments are used for speculative or trading purposes. The document mentions the fair value of the company's financial instruments as of December 31, 2024, and 2023, which are disclosed in Note 12, "Financial Instruments." It indicates that these instruments, excluding the Exchange Feature, are priced using quoted market prices for similar assets or liabilities in active markets (Level 2 inputs). This suggests that Dollar Rent A Car uses standard valuation methods for its financial instruments.

Furthermore, the FDD discusses various financing arrangements that Dollar Rent A Car maintains, such as the Australian Securitization, the New Zealand RCF, and the U.K. Financing Facility. These arrangements are primarily for the purpose of financing the company's rental car fleet operations. The document also mentions the U.K. ABS, which is intended to be the primary vehicle financing facility for the company's vehicle rental fleet in the U.K. These details indicate that Dollar Rent A Car uses financial instruments to manage its assets and liabilities related to its core business operations.

While the FDD provides insight into the types of financial instruments Dollar Rent A Car uses and their valuation methods, it does not offer a definitive statement on whether the company engages in speculative or trading activities with these instruments. A prospective franchisee should seek clarification from Dollar Rent A Car regarding their specific policies and practices related to the use of financial instruments for speculative or trading purposes to fully understand the financial risks and strategies of the company.