What businesses must be included in the financial statements provided by a Byrider franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Within one hundred twenty (120) days after the end of the Franchisee's fiscal year, complete financial statements for such fiscal year, and such financial statements shall include all businesses that operate in conjunction with or in relation to the Business, including ancillary products, reinsurance companies, and real estate companies. If Franchisee uses a third party accounting firm to review or audit, then those reports prepared by the third party must be furnished. If no third party is engaged, then the statements prepared internally must be furnished. Such annual statements shall be prepared in accordance with generally accepted principles applied on a consistent basis. The Company reserves the right to require that such financial statements be audited by independent Certified Public Accountants at the Franchisee's expense.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees must include financial statements for all businesses that operate in conjunction with or in relation to their Byrider business. This includes any ancillary products, reinsurance companies, and real estate companies associated with the franchise. These financial statements are due within 120 days after the end of the franchisee's fiscal year.
If a third-party accounting firm is used for review or auditing, those reports must be furnished. Otherwise, internally prepared statements are acceptable. These annual statements must adhere to generally accepted accounting principles applied consistently. Byrider retains the right to require that these financial statements be audited by independent Certified Public Accountants at the franchisee's expense.
This requirement ensures that Byrider has a comprehensive view of the franchisee's financial health and operations, including any related businesses that could impact the franchise's performance. For a prospective franchisee, this means maintaining meticulous records for all related business activities and being prepared to potentially incur the expense of an independent audit if required by Byrider. It is a common practice in franchising to require franchisees to provide detailed financial information to ensure brand consistency and financial stability across the franchise system.