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D75/100FDD 2026

Dollar Rent A Car — Litigation & Risk

Automotive - Repair & Service · FDD Items 3, 4 & 5

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Elevated Risk

31 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
31
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
5
Government-backed loans issued
Default rate
40.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$2.1M
Avg loan size
$412K
Participating lenders
5

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — parent company facing financial viability questions and note repayment litigation
  2. 02MINORUnit count declining 2.9% YoY (262 units) — shrinking franchise system indicates market contraction or franchisee exits
  3. 03MEDNo disclosed average revenue or net income (Item 19) — impossible to validate ROI or profitability claims
  4. 04HIGHMultiple ongoing litigation matters including international trademark disputes, franchisee terminations, and consumer fraud settlements suggesting operational and legal instability
  5. 05MINORLarge settlement history involving false arrests and consumer protection violations — reputational and operational risk exposure
  6. 06MINORUnprotected territory with 5-year term — franchisees face direct competition from other Dollar locations and no guaranteed market exclusivity
  7. 07MINORRoyalty rate 6-8% of gross receipts is high-end for car rental with no transparency on break-even thresholds
  8. 08MINORWide investment range ($879K–$16.2M) suggests inconsistent unit economics or disclosure clarity

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.