What is the condition for the Licensee to access and use the Byrider Licensed System?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
icensee data processing and other services related to the "buy-here-pay-here" automobile sales and collection management systems, particularly generation of specific retail installment sales and security contracts from input data and monitoring of receivables and collection productivity by Licensee (hereinafter referred to as "Services"). Licensor shall have the right to suspend or limit, in whole or in part, Licensee's access to the Services upon ten (10) days written notice to Licensee if any amounts due Licensor are more than thirty (30) days past due or as otherwise provided in the Franchise Agreement.
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- License. Subject to all the terms and conditions of this Agreement and the Franchise Agreement, Licensor hereby grants to Licensee, and Licensee hereby accepts, a nonexclusive, indivisible, non-transferable license to access and use the Licensed System in a manner consistent with the terms of this Agreement. Such license is provided for the sole purpose of allowing Licensee access to the functions of the Licensed System necessary to obtain the Services for the sole use of Licensee's automobile sales business pursuant to and in accordance with the Franchise Agreement. It is the responsibility of the Licensee alone to ensure that the Licensed System fulfills the individual requirements and goals of the Licensee. This license extends only to use for Licensee's own internal automobile sales business purposes and not for any direct or indirect benefit of third parties. Licensee agrees to access the Licensed System only by means of the equipment and procedures substantially similar to those designated in Appendix A attached hereto and incorporated herein by reference. Licensee agrees to use the Licensed System solely for the purposes of business initiated and conducted at the location specified in Appendix C, and additional locations may not be added without Licensor's approval. Licensee shall not use or access the Licensed System in connection with the performance of data processing services or as a service bureau for any third person. Licensee further agrees that it shall not use the Licensed System or transmit data to, through, or from the Hosting Facility in any manner that is contrary to any law or regulation of the United States or any state or country where Licensee is located. Licensee shall, at all times, use the Licensed System and access the Hosting Facility as directed by the Licensor from time to time. The components of the Licensed System may be changed from time to time at the Licensor's sole discretion.
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- Transmission of Data and Use of Services. Except as may be provided in this Agreement, Licensee shall be solely responsible for communications and transmission of any and all data and information of any kind between Licensee and the Licensed System/Hosting Facility (hereinafter "Customer Data"). Licensee assumes exclusive responsibility for the consequences of any instructions Licensee may give Licensor, for Licensee's failure to properly access the Licensed System in the manner prescribed by Licensor, and for Licensee's failure to supply accurate, timely, and/or complete input information. All network connectivity to and from the Licensed System and Hosting Facility is the responsibility of the Licensee and must be by means of secured network connections and controlled devices.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a licensee's access to and use of the Licensed System is subject to several terms and conditions outlined in the Software Services and User Agreement, which is part of the Franchise Agreement. Byrider grants the licensee a nonexclusive, indivisible, non-transferable license to access and use the Licensed System in accordance with the agreement's terms. This license is specifically for obtaining services necessary for the licensee's automobile sales business, aligning with the Franchise Agreement.
The licensee must use equipment and procedures similar to those in Appendix A and operate the business at the location specified in Appendix C, with additional locations requiring Byrider's approval. The Licensed System is intended for the licensee's internal automobile sales business and not for the benefit of third parties. The licensee is prohibited from using the system for data processing services or as a service bureau for others. Furthermore, the licensee must adhere to all applicable laws and regulations when using the system and accessing the Hosting Facility, following Byrider's directions.
Byrider retains the right to modify the components of the Licensed System at its discretion and may suspend or limit the licensee's access if any payments are more than 30 days past due, with a 10-day written notice. The licensee is responsible for maintaining a secure network connection to the Licensed System and Hosting Facility, ensuring a secure work environment to prevent unauthorized access. The licensee is also responsible for the costs, service levels, and selection of its network carrier. Byrider can suspend network connectivity if it believes the licensee poses a threat to the system due to viruses, hacking, or other dangers, and will reactivate access once the threat is resolved.