Thrifty Car Rental 2006 Annual Report Download - page 15

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Dollar and Thrifty offer franchisees the opportunity to dual franchise in smaller U.S. and Canadian
markets. That is, 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.
Dollar - In addition to an initial franchise fee, each Dollar U.S. franchisee is generally required to pay a
system fee equal to 8% of airport rental revenue and 6% for suburban operations.
Thrifty - In addition to the initial franchise fee, each Thrifty U.S. franchisee pays an administrative fee,
which is generally 3% of base rental revenue, excluding ancillary products and an advertising fee ranging
from 2.5% to 4.5% of base rental revenue to a separate advertising fund managed by the Company.
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 vehicle leasing, reservations, marketing programs and assistance, branded supplies, image and
standards, training, 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
2006 2005 2004
Franchisee locations:
Dollar 158 165 164
Thrifty 271 318 343
Total franchisee locations 429 483 507
Franchisee agreements:
Dollar 89 85 75
Thrifty 135 146 154
Total franchisee agreements 224 231 229
As of December 31,
International
Dollar and Thrifty offer master franchises outside the United States 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, 2006, exclusive of the United States and Canada, Dollar had
franchised locations in 51 countries and Thrifty had franchised locations in 66 countries. These locations
are in Latin America, Europe, the Middle East, and the Asia-Pacific regions. In 2003, the Company
began offering franchisees the opportunity to license the rights to operate both the Dollar and Thrifty
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