What advertising plans does Byrider Franchising Partners provide?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
uirements, Guidance and Approval. Periodically Byrider Franchising Partners provides you with advertising plans, materials and advice on advertising, promotional and public relations matters. (Franchise Agreement Article 6.9 E).
In addition, Byrider Franchising Partners has the right to approve or disapprove of all advertising and promotional materials you propose to use. (Franchise Agreement - Article 10.1) Advertising is explained in more detail below.
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- Annual Meetings. Byrider Franchising Partners holds one to three annual meetings at which you must be represented. Byrider Franchising Partners notifies you of the dates and locations of these meetings, and you are responsible for your own transportation and traveling expenses and your pro rata share of the meeting expenses that are associated with attending these meetings, which typically ranges between $599 and $1,499 for each meeting. Byrider Franchising Partners reserves the right to increase or decrease the number of meetings. (Franchise Agreement Article 6.11).
- C. Advertising Funds. Advertising through your efforts is placed in television, radio, magazine and newspaper media. You will participate in advertising in local and regional areas. In the future, Byrider Franchising Partners may establish, maintain and administer a National Advertising Fund to expand advertising efforts to national coverage. When and if Byrider Franchising Partners creates this fund, you must contribute to the fund as required by Byrider Franchising Partners. However, your contributions to any National Advertising Fund (if established) and your Local Advertising Requirement (as defined below) will not collectively exceed 4% of your Gross Sales (Byrider Vehicle Sales) (collectively, the "Advertising Spend Cap").
Your required payment of the Advertising Fees to Byrider Franchising Partners, as provided in Item 6, is excluded from the Advertising Spend Cap. These funds are typically spent to produce advertising materials. These funds are not used to place advertisements in any given market. Byrider Franchising Partners may increase the monthly contribution, but such increase(s) will not exceed $400.00 in the aggregate during any 24-month period.
In 2023, the advertising expenditures were as follows: Production (31.7% of funds); and Administrative Expenses (68.3% of funds). Byrider Franchising Partners is not required to spend any particular amount on advertising in your area or territory. Any fees that are not spent in the year that they are contributed to Byrider Franchising Partners are carried over to the next year. No part of the Advertising Fees is used to solicit franchise sales. Each year, Byrider Franchising Partners will prepare a summary of its collections and activities, and you may obtain a copy of the summary for Byrider Franchising Partners' most recently completed fiscal year by making a written request to Byrider Franchising Partners. Byrider Franchising Partners is not required to have the Advertising Fee fund audited.
Byrider Franchising Partners may conduct its own advertising and may employ advertising agencies to assist in promotions, but is not required to do so. If Byrider Franchising Partners conducts its own advertising, it may prepare national, regional or local advertising materials, programs and public relations activities including video, audio and written materials and electronic media. Byrider Franchising Partners does not have any obligation to advertise in the area near your Business location. You will be permitted to use and publish advertising materials only with Byrider Franchising Partners' approval. In addition, you may not alter approved advertisements except to fill in local identification information.
In addition to the Advertising Fees and contributions to any National Advertising Fund, you must, if requested by Byrider Franchising Partners, join a local advertising coop, whose membership is defined by the region of your franchised location, and make contributions to that co-op as required by the co-op's by-laws. Byrider Franchising Partners is responsible for administration of the co-op, which must operate from written governing documents that are available for review by you. As well, periodic financial statements are prepared and available for review by you. Byrider Franchising Partners has the power to require a co-op be formed, changed, dissolved or merged. Contributions you make to a co-op will be credited toward the required advertising expenditures as discussed in Article X of the Franchise Agreement and Item 6 of this Disclosure Document.
Source: Item 11 — (FDD pages 42–50)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider provides franchisees with advertising plans, materials, and advice on advertising, promotional, and public relations matters periodically. Byrider retains the right to approve or disapprove all advertising and promotional materials proposed by the franchisee.
Franchisees are expected to participate in local and regional advertising efforts, utilizing media such as television, radio, magazines, and newspapers. Byrider may establish a National Advertising Fund in the future to expand advertising efforts nationally, requiring franchisees to contribute as determined by Byrider. However, the combined contributions to any National Advertising Fund and the Local Advertising Requirement will not exceed 4% of the franchisee's Gross Sales (Byrider Vehicle Sales), referred to as the "Advertising Spend Cap."
Franchisees may be required to join a local advertising co-op, administered by Byrider, and contribute as required by the co-op's bylaws. These co-ops operate with written governing documents and provide periodic financial statements for franchisee review. Byrider has the authority to form, change, dissolve, or merge these co-ops. Contributions to the co-op count toward the franchisee's required advertising expenditures. Franchisees participate in voting on the use of co-op funds, with Byrider-owned locations having the same voting power as franchisee-owned locations. Franchisees must spend 2% of their Gross Sales on co-op or local advertising, which Byrider can increase to 3% in the future, subject to the Advertising Spend Cap.
In 2023, Byrider's advertising expenditures were allocated as follows: 31.7% for production and 68.3% for administrative expenses. Byrider is not obligated to spend a specific amount on advertising in any particular area or territory. Unspent advertising fees are carried over to the next year, and no part of the Advertising Fees is used for franchise sales. Byrider prepares an annual summary of its collections and activities, available to franchisees upon written request. Byrider may conduct its own advertising, employing advertising agencies for assistance, and may create national, regional, or local advertising materials, but has no obligation to advertise near the franchisee's location. Franchisees can only use and publish approved advertising materials and cannot alter them except for local identification information.