Is the advertising fee money contributed by Byrider franchisees used for the promotion of the Company entity itself?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
he Company may at times allow for substitution of items in Appendix A at the request of Franchisee if a substitution will not materially impact the Company's delivery of services or support but is under no obligation to do so.
- 9.5 Reputation Management Fee. Franchisee is required to pay to the Company for reputation management texts performed by the Company or its designee.
ARTICLE X
ADVERTISING AND PROMOTION
10.1 Advertising Fee. Franchisee shall contribute $2,450.00 for each Business Location each month to the Company used exclusively for the promotion and advertising of the business of all franchisees of the System. All Advertising Fee money goes toward franchisees (not the Company entity). At the Company's sole discretion, the Company may increase the monthly contribution, provided that the increase(s) will not exceed $400.00 in the aggregate during any twenty-four (24)-month period. All amounts received by the Company will become the exclusive property of the Company. The Company will hold such amounts for the benefit of the Company and all Franchisees and will be expended exclusively for the promotion and advertising of the business of the Company and all franchisees of the System and Marks, consistent with this Agreement, in such manner and amounts as determined by the Company, acting in its sole discretion, but within the limitations stated above. The advertising
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to contribute to an advertising fund. Each franchisee must contribute $2,450.00 per month for each Business Location. These advertising fees are to be used exclusively for the promotion and advertising of all Byrider franchisees within the system. The advertising fee money goes toward franchisees and not the Company entity itself.
The FDD states that Byrider has the discretion to increase the monthly advertising contribution, but the increase cannot exceed $400.00 in the aggregate during any 24-month period. All amounts received by Byrider become the company's exclusive property, to be held for the benefit of the Company and all Franchisees. These funds will be used exclusively for promotion and advertising, consistent with the agreement.
These advertising and promotional expenditures may cover costs related to maintaining, administering, and preparing promotional materials for various media, including television, radio, billboards, magazines, and newspapers. The costs may also include fees for advertising agencies and consultants, as well as reasonable fees for management or administrative services rendered by Byrider.
In addition to the advertising fee, Byrider franchisees may also be required to join local advertising co-ops and contribute to them as required by the co-op's bylaws. Franchisees must spend at least 2% of their Gross Sales (Byrider Vehicle Sales) on coop or local advertising, including electronic media. Byrider may increase this local advertising requirement to 3% of the franchisee's Gross Sales. If Byrider or its affiliate establishes a National Advertising Fund, franchisees will be required to contribute to that fund as well. However, the franchisee's contributions to any National Advertising Fund (if established) and the Local Advertising Requirement will not collectively exceed 4% of the franchisee's Gross Sales (Byrider Vehicle Sales). The required payment of Advertising Fees to Byrider is excluded from this Advertising Spend Cap.