Why can't Byrider Franchising Partners include all the financial statements required by the FTC Franchise Rule?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit A contains an unaudited opening balance sheet of Byrider Franchising Partners as of September 5, 2024. Byrider Franchising Partners has not been in business for three years or more and cannot include all the financial statements required by the Federal Trade Commission Franchise Rule.
Source: Item 21 — Financial Statements (FDD page 87)
What This Means (2025 FDD)
According to the 2025 FDD, Byrider Franchising Partners does not include all the financial statements mandated by the Federal Trade Commission (FTC) Franchise Rule because the company has not been in business for the requisite three years or more. The FDD includes an unaudited opening balance sheet as of September 5, 2024.
This is a common situation for newer franchise systems. The FTC requires a certain history of financial performance before a franchisor can provide fully audited statements. The absence of these statements means that prospective franchisees have less historical financial data to review when evaluating the opportunity.
While the FDD includes an opening balance sheet, potential franchisees should conduct thorough due diligence. This includes carefully reviewing Item 19 (Financial Performance Representations) for any available financial performance data, speaking with existing franchisees to gather insights into their experiences, and consulting with financial advisors to assess the risks and potential rewards of investing in a Byrider franchise.