Dollar Rent A Car 2011 Annual Report Download - page 12

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Dollar and Thrifty offer franchisees the opportunity to dual franchise in smaller U.S. and Canadian markets. Under a dual franchise, one franchisee can
operate both the Dollar and the Thrifty brand, thus allowing them to generate more business in their market while leveraging fixed costs.
Dollar and Thrifty license to franchisees the use of their respective brand service marks in the vehicle rental and leasing and parking businesses. Franchisees
of Dollar and Thrifty pay an initial franchise fee generally based on the population, number of airline passengers, total airport vehicle rental revenues and the
level of any other vehicle rental activity in the franchised territory, as well as other factors. Dollar and Thrifty offer their respective franchisees a wide range of
products and services which may not be easily or cost effectively available from other sources.
System Fees in the U.S.
In addition to an initial franchise fee, each Dollar U.S. franchisee is generally required to pay a system fee equal to 8% of rental revenue at airport
locations and 6% at suburban operations.
In addition to the initial franchise fee, each Thrifty U.S. franchisee pays a fee generally ranging from 6% to 8% of rental revenue.
System Fees in Canada
All Dollar and Thrifty Canadian franchisees, whether operating a single-brand or co-brand location, pay a monthly fee generally equal to 8% of rental revenue.
Franchisee Services and Products
Dollar and Thrifty provide their U.S. and Canadian franchisees a wide range of products and services, including reservations, marketing programs and
assistance, branded supplies, image and standards, rental rate management analysis and customer satisfaction programs. Additionally, Dollar and Thrifty
offer their respective franchisees centralized corporate account and tour billing and travel agent commission payments.
Summary of U.S. and Canada Franchise Operations Data
As of December 31,
2011 2010 2009
Franchisee locations:
Dollar 125 125 131
Thrifty 181 183 186
Total franchisee locations 306 308 317
International
Dollar and Thrifty offer master franchises outside the U.S. and Canada, generally on a countrywide basis. Each master franchisee is permitted to operate
within its franchised territory directly or through subfranchisees. At December 31, 2011, exclusive of the U.S. and Canada, Dollar had franchised locations
in 59 countries and Thrifty had franchised locations in 75 countries. These locations are in Latin America, Europe, the Middle East, Africa and the Asia-
Pacific regions. The Company offers franchisees the opportunity to license the rights to operate either the Dollar or the Thrifty brand or both brands in certain
markets on a dual franchise or co-brand basis. Revenue generated by the Company from franchised operations outside the U.S. and Canada totaled $14.2
million in 2011, comprised primarily of system, reservation and advertising fees.
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