About Dollar Franchise
Dollar is a car rental franchise operating under the Hertz Global Holdings, Inc.
umbrella.
The brand serves value conscious travelers at airport and neighborhood locations with a fleet of well maintained vehicles.
Dollar Franchise Cost & Fees
Minimum Investment
$564K
Average Investment
$6.6M
Maximum Investment
$12.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 to $100,000 | One-time payment upon signing |
| Royalty Fee | 6% to 8% of Gross Receipts of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently $0, but may be imposed in the future as Program Assessments. | National brand fund |
| Total Investment Range | $564,300 – $12,539,000 | Includes build-out, inventory, working capital |
The investment range of $564K–$12.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% to 8% of Gross Receipts) and marketing fee (Currently $0, but may be imposed in the future as Program Assessments.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $100,000 |
| Training Expenses | $3,000 | $3,000 |
| Passenger Cars | $435,000 | $11,700,000 |
| Courtesy Vehicles | $55,000 | $350,000 |
| Equipment and Supplies | $5,000 | $20,000 |
| Insurance | $5,000 | $40,000 |
| Real Estate & Improvements | $0 | $0 |
| Professional Fees | $3,000 | $10,000 |
| Computer System, Hardware and Software | $11,500 | $250,000 |
| Optional Software | $1,500 | $15,000 |
| Business License | $100 | $500 |
| Miscellaneous Installation Fees | $200 | $500 |
| Additional Funds – 3 months | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you |
| Renewal Fee | $5,000 to $10,000 |
| Audit Fee | Cost of the audit if we discover you have underreported by two percent (2%) or more or we discover you have failed to comply with any provision of the Franchise Agreement or any other agreement between you and us or our affiliate(s). |
| Program Assessments | Will vary. |
| Insurance | Cost of procuring insurance for you. |
| Reservation Charges | $3.84 to $6.30 per passenger car reservation. |
| Rate Management Services | $100 to $5,500 per location per month |
| Travel Industry Commissions | 0-30% of gross rental charges |
| Travel Vouchers | Service fee presently equal to 5% of Net Proceeds of the voucher |
| EDI Cost | $6.50 for TSD and $1.50 for OKC Administration for a total of $8.00 per reservation |
| Dollar Rental Processing Fee | 2.5% for Auto Feed; 4.6% for manual feed for Insurance and Service Replacement customers |
| Guaranteed Charge Cards - Service Fees | Currently between 1% and 5% of gross rental charges. |
| Charge Cards Guaranteed by Parent - Central Bill Service Fees | May range from 2.5% to 6% of gross rental charges |
| Charge Cards Guaranteed by Parent - Direct Bill Service Fees | May range from 3% to 6% of gross rental charges |
| Inspection Fee | Cost of Inspection |
| Reservation Assignment Fee | $4 to $6 per reservation made through the Reservation System |
| Interest and Late Fees | Interest at the lesser of the rate we prescribe, or the maximum rate allowed by law, plus a late fee of not less than 5% of the total amount overdue. |
| Supplier Testing | Will vary under circumstances |
| Liquidated Damages for Non-Compliance | $100 per day that the breach persists; additional $5,000 if violation still persists after ninety (90) days. |
| Holdover Fees | The then-applicable Franchise Fee and other such fees and assessments being charged by us. |
| Security Deposit | Will vary under the circumstances |
| Early Termination Fee – Liquidated Damages | Will vary under the circumstances |
| Value Proposition Services | $0 - $150,000 depending on your selection of optional products and services offerings |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 126 hours, including 16 hours of classroom training, 52 hours of on-the-job training, and 58 hours of online training. |
| Classroom Training | 16 hours |
| On-the-Job Training | 52 hours |
| Training Location | Franchisor’s Headquarters (Estero, Florida), your designated location, airport and off-airport locations, and online. |
| Additional Training | The franchisor may require franchisees to attend remedial training programs at their sole expense. Optional additional training programs and courses are also offered, which franchisees may attend at their option and expense. Training courses are also available through a third-party vendor, ACS Learning Services, both online and in-person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies by franchisee, typically a city or political subdivision(s) |
| Description | Franchisees are granted a non-exclusive geographic territory, typically defined by a city or political subdivision. The franchisor retains the right to use and franchise others to use the System and Marks within and outside the franchisee's territory, and to develop and franchise other competitive brands (e.g., Hertz, Thrifty, Firefly) within the territory. The franchisor may also use alternative distribution methods, including the Internet, within the territory. Franchisees do not have rights of first refusal for additional franchises or protected areas. The franchisor may require additional locations to be opened within the territory based on customer demand, with failure to comply potentially leading to termination or reduction of the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | As set forth in Attachment A to the Franchise Agreement |
| Renewal Term | As set forth in Attachment A to the Franchise Agreement |
| Renewal Fee | $5,000 to $10,000 |
| Renewal Conditions | Franchisee must not be in default, must have made all payments timely, complied with all terms, given written notice 9-12 months prior to term end, paid all amounts owed, complied with current qualification and training requirements, paid franchisor's out-of-pocket costs for renewal application, executed a general release, refurbished/modernized the business to current standards, achieved performance requirements, and the franchisor must have a continuing program and be offering new franchises. |
| Transfer Fee | Five percent (5%) of the average annual gross sales for the three (3) years immediately preceding a transfer by you |
| Transfer Conditions | Franchisee must be in full compliance and current on all obligations, provide written notice with a bona fide written offer and detailed transferee information, proposed transferee must meet franchisor's standards and qualifications, franchisee and owners must execute a transfer, consent and release agreement, proposed transferee cannot be a publicly-held entity or own other competing vehicle rental businesses (unless approved), proposed transferee must execute the then-current franchise agreement and ancillary agreements, all amounts due to franchisor/affiliates must be paid, and the transfer must occur within 30 days of approval. |
| Termination for Cause | The franchisor may terminate the agreement without notice for bankruptcy/insolvency, unauthorized transfer attempts, or death/disability/dissolution of an owner. Termination with notice may occur for discontinuing business for more than 5 days, material misrepresentation, failure to open/operate locations, understating gross receipts by more than 3%, failure to complete initial training, failure to comply with airport procedures, felony conviction or other criminal offenses, fraud upon consumers or franchisor, violation of exclusive dealing covenant, revocation of guarantee, payment default under any guaranty, failure to comply with non-compete, repeated non-compliance (3+ times in 12 months), unauthorized advertising (3+ times), material decrease in financial stability, failure to maintain minimum vehicles, failure to pay monies due (30 days notice), failure to maintain required insurance (10 days notice), pricing non-compliance (30 days notice), unauthorized use of Marks (30 days notice), failure to comply with other provisions (30 days notice), or failure to furnish access for inspections (3 days notice). |
| Non-Compete Period | 12 months after transfer, termination, or expiration of the franchise agreement or cessation of business operations |
| Non-Compete Details | During the non-compete period, the franchisee and its owners are prohibited from directly or indirectly owning, engaging in, being employed by, advising, assisting, leasing or subleasing to, investing in, franchising, lending money to, or having any other interest in any Vehicle Rental Business (except under a franchise from the franchisor or its affiliate) within: (i) the Franchised Territory; (ii) 100 miles of the border of the Territory; (iii) the territory of any other System franchisee; (iv) a 10-mile radius of the border of the territory of any other System franchisee; or (v) a 10-mile radius of any Franchised Business operated by the franchisor or its affiliate. It also prohibits engaging in a transaction comparable to a transfer that would operate a Vehicle Rental Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or a full-time manager must devote significant personal time and best efforts to operating the business. The manager must be disclosed to the franchisor, complete required training, have sufficient vehicle rental experience, and dedicate full-time to the management and operation. Owners and managerial employees are required to sign confidentiality and non-competition agreements. The non-compete restricts involvement in any other Vehicle Rental Business within the franchised territory, 100 miles of its border, or within 10 miles of any other Dollar or company-owned Dollar/affiliate business for 12 months after transfer, termination, or expiration. |
| Required Suppliers | Franchisees may be required to purchase or lease all cars, equipment, signs, uniforms, rental agreements, Computer System, furnishings, accessories, supplies, and other products and materials from designated suppliers, including the franchisor or its affiliates. Specific items like hard copy Dollar System Standard Rental Agreements and computer system software must be acquired from approved suppliers. |
| Supply Restrictions | Rental vehicles cannot be older than the current model year plus two model years. The franchisor reserves the right to designate a single approved supplier for any required purchases. If a franchisee wishes to use an unapproved supplier, they must submit a written request for approval, including information and samples, and may be required to pay for inspections and testing of the supplier's facilities and products. |
| Franchisor Revenue from Suppliers | In the last fiscal year, the Parent derived approximately $5,213,717.92 (0.0711% of total revenue) from reservation charges, $704,967.14 (0.0096% of total revenue) from credit card service fees and back-office services, $347,606.00 (0.0047% of total revenue) from fleet purchases (an additional $200 per vehicle), and $709,586.23 (0.0097% of total revenue) from Rate Management Services. No revenue was derived from Value Proposition products and services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any notes, leases, or obligations for franchisees. |
Dollar Franchise Earnings — Item 19
Dollar does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Dollar does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Dollar Litigation & Risk Flags
6 Pending Actions ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dollar System Growth
Total Units
197
Franchised
58
Company-Owned
139
Dollar currently operates 58 franchised locations and 139 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 8 | 12 | 229 |
| 2020 | 5 | 24 | 210 |
| 2021 | 5 | 18 | 197 |
Transfers: 3 | Closures: 54
Public Figures (Item 18)
The following public figures are associated with this franchise: Dave Ramsey
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$7336.2M
Dollar Franchise — FAQ
The total investment to open a Dollar franchise ranges from $564,300 to $12,539,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000 to $100,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Dollar charges a royalty fee of 6% to 8% of Gross Receipts of gross sales, plus a Currently $0, but may be imposed in the future as Program Assessments. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Dollar Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Dollar to ensure you have the most up-to-date version.
Dollar does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Dollar has been franchising since 2003. The FDD shows an investment range of $564,300-$12,539,000, a 6% to 8% of Gross Receipts royalty, and no Item 19 earnings disclosure. There are 6 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 to $100,000 and the total investment ranges from $564,300 to $12,539,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Automotive Franchises
Interested in Dollar?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Dollar and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Dollar or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com