Thrifty Car Rental 2009 Annual Report Download - page 12

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Due to the continued weak economic environment and volatile credit markets, some of the Company’s
franchisees have experienced financial challenges. During 2009, 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.
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 rental revenue at airport locations and 6% at suburban operations.
Thrifty - In addition to the initial franchise fee, each Thrifty U.S. franchisee pays a fee generally ranging
from 5.5% to 8% of base 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
2009 2008 2007
Franchisee locations:
Dollar 131 143 146
Thrifty 186 198 219
Total franchisee locations 317 341 365
Franchisee agreements:
Dollar 80 92 92
Thrifty 101 130 142
Total franchisee agreements 181 222 234
As of December 31,
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, 2009, exclusive of the U.S. and Canada, Dollar had franchised
locations in 60 countries and Thrifty had franchised locations in 75 countries. These locations are in Latin
America, Europe, the Middle East, 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 $10.5 million in 2009, comprised primarily of system,
reservation and advertising fees.
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