What are the conditions under which Byrider Franchising Partners can require the franchisee to upgrade the Proprietary Computer Software (Item 8) and how does this relate to the ongoing fees (Item 6)?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ses, hackers, or performance degradation. Byrider Franchising Partners maintains a specific level of standards for networks, security, software, hardware, and other features that all franchisees must be in compliance with. These standards are required to facilitate the common services provided by Byrider Franchising Partners, and to minimize disruptions or security concerns throughout the franchise community. Other than the Proprietary Software, Byrider Franchising Partners has no contractual obligation for maintenance, repairs, updates or upgrades to the remaining components to your technology system. We currently estimate that it will cost $5,000 to $40,000 to purchase or lease hardware, software and other components of the technology system and the annual cost of maintenance, repairing, updating and upgrading the technology system will likely range from $0 to $75,000.
The Byrider Franchising Partners Software consists of programs specially designed to the needs of your Business, and it includes programs that keep track of inventory and vehicle repairs, store customer information, assist in processing financing to customers, perform credit checks and record accounting transactions. Byrider Franchising Partners will have unlimited independent access to the sales and vehicle repair information stored in your files. (Franchise Agreement - Article 13.2).
Byrider Franchising Partners requires some very specific equipment, networking, and software to provide its services. At the time of your purchase, you will be informed of the items that are mandatory and required, and those items that are recommended but can be altered to meet your needs. You should be aware that future changes in computer technology, communication technology, software design, third party vendor technology or business practices, and Byrider Franchising Partners' acquisition of upgraded or new equipment may alter these requirements over time and are subject to change.
During many years of servicing franchisees, these requirements have been designed to ensure a specific level of quality and capabilities are provided by our franchisees to their customers.
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners maintains specific standards for networks, security, software, hardware, and other features that all franchisees must comply with. These standards are in place to facilitate common services and minimize disruptions or security concerns. Byrider may require franchisees to periodically update technology, including both hardware and software, to match the current standards as they evolve over time. The cost of technology implemented at the franchise location is the sole responsibility of the franchisee to install, maintain, and upgrade. There is a per-site fee to cover VPN clients for accessing Byrider's proprietary systems, as well as a per-user fee to license hosted services such as email.
Item 8 states that franchisees must license Byrider's Proprietary Computer Software and enter into a Software Services and User Agreement for ongoing service and support. Franchisees are not required to purchase or lease any other computer equipment or software from Byrider, other than Google Workspace licenses and AnyConnect for VPN/NPA services to use the Proprietary Software.
Regarding fees, Byrider reserves the right to charge a technology fee or an accounting fee for analyzing and summarizing accounting information or providing financial reports. Additionally, if Byrider modifies the System, franchisees are responsible for paying for those required modifications. This indicates that while the franchisee is responsible for the initial and ongoing costs of maintaining and upgrading their technology, Byrider may impose additional fees for specific technology-related services or system-wide modifications.