Thrifty Car Rental 2008 Annual Report Download - page 10

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Summary of Corporate Operations Data
2008 2007 2006
Rental revenues:
United States - Dollar 933,072$ 964,416$ 910,434$
United States - Thrifty 602,653 621,043 540,947
Total U.S. rental revenues 1,535,725 1,585,459 1,451,381
Canada - Dollar and Thrifty 80,428 90,890 87,292
Total rental revenues 1,616,153 1,676,349 1,538,673
Other 20,966 17,715 11,054
Total revenues from U.S. and
Canadian Corporate Operations 1,637,119$ 1,694,064$ 1,549,727$
2008 2007 2006
Rental locations (U.S. and Canada):
Dollar 181 213 200
Thrifty 219 253 207
Total corporate rental locations 400 466 407
Year Ended December 31,
(in thousands)
As of December 31,
Franchising
United States and Canada
Both Dollar and Thrifty sell U.S. franchises on an exclusive basis for specific geographic areas, generally
outside the top 75 U.S. airport markets. Most franchisees are located at or near airports that generate a
lower volume of vehicle rentals than the airports served by company-owned stores. In Canada, Dollar
and Thrifty sell franchises in markets generally outside the top eight airport markets.
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.
Due to the current economic environment and severely constrained credit markets, some of the
Company’s franchisees are experiencing financial challenges. During 2008, a limited number of
franchisees have either closed or consolidated their operations, resulting in reduced fee revenue to the
Company and a potential for increased bad debt exposure on amounts owed by franchisees.
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