factual

What is the current required contribution to the National Advertising Fund for a Byrider franchise?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

The term "Gross Receipts (CNAC Collections)" means all monies received, such as payments from customer accounts, deferred down payments, payments from bulk sale of customer accounts, and including all other amounts received, except cash down payment received prior to delivery of the vehicle.

  • 5/ Your contributions to any National Advertising Fund (if established) and your Local Advertising Requirement (defined in Item 11) will not collectively exceed 4% of your Gross Sales (Byrider Vehicle Sales).

Source: Item 6 — Other Fees (FDD pages 21–32)

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, the contribution to the National Advertising Fund, if established, and the Local Advertising Requirement will not collectively exceed 4% of the franchisee's Gross Sales (Byrider Vehicle Sales). This means that a franchisee's total advertising expenses, including both national and local efforts, are capped at 4% of their revenue from vehicle sales.

This contribution is calculated based on "Gross Receipts (CNAC Collections)," which includes all monies received, such as payments from customer accounts, deferred down payments, payments from bulk sale of customer accounts, and including all other amounts received, except cash down payment received prior to delivery of the vehicle.

It's important to note that the National Advertising Fund may not yet be established. If it is, Byrider franchisees need to budget up to 4% of their gross vehicle sales for combined national and local advertising. Franchisees should confirm with Byrider whether the National Advertising Fund is currently in effect and how the contribution is allocated between national and local advertising.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.