What does Byrider define as the 'Advertising Fee'?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1 Advertising Fee. The term "Advertising Fee" shall mean the fees discussed in Article X herein.
Franchisee shall contribute $2,450.00 for each Business Location each month to the Company used exclusively for the promotion and advertising of the business of all franchisees of the System. All Advertising Fee money goes toward franchisees (not the Company entity). At the Company's sole discretion, the Company may increase the monthly contribution, provided that the increase(s) will not exceed $400.00 in the aggregate during any twenty-four (24)-month period. All amounts received by the Company will become the exclusive property of the Company. The Company will hold such amounts for the benefit of the Company and all Franchisees and will be expended exclusively for the promotion and advertising of the business of the Company and all franchisees of the System and Marks, consistent with this Agreement, in such manner and amounts as determined by the Company, acting in its sole discretion, but within the limitations stated above. The advertising and promotional expenditures which may be made by the Company include any costs of maintaining, administering, directing and preparing promotional materials, advertising and similar public relations activities for use in television, radio, billboards, magazines, newspapers and any other medium, such costs to include fees for advertising agencies and consultants and reasonable fees for any management or administrative services rendered by the Company.
Upon request by the Company, Franchisee shall also join one or more Companyapproved local advertising co-ops and make contributions to such co-ops as required under the coop's bylaws. Franchisee shall spend at least 2% of its Gross Sales (Byrider Vehicle Sales) on coop or local advertising, including electronic media (the "Local Advertising Requirement"). Company may increase the Local Advertising Requirement to 3% of Franchisee's Gross Sales (Byrider Vehicle Sales), subject to the Advertising Spend Cap (see Section 10.2 below). Advertising fees must be paid in the above-described amounts for each Business Location.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Advertising Fee is defined in Article X of the agreement. Franchisees are required to contribute $2,450.00 per Business Location each month, which is used exclusively for the promotion and advertising of all Byrider franchisees. All advertising fee money goes toward franchisees, not the Byrider entity itself.
Byrider retains the discretion to increase the monthly advertising contribution, but these increases are capped at $400.00 in the aggregate during any 24-month period. All amounts received by Byrider for the advertising fee become the exclusive property of Byrider, to be held for the benefit of Byrider and its franchisees. These funds will be used exclusively for the promotion and advertising of the Byrider business, System, and Marks, consistent with the agreement.
The advertising and promotional expenditures may cover costs related to maintaining, administering, and preparing promotional materials for various media, including television, radio, billboards, magazines, and newspapers. These costs may also include fees for advertising agencies, consultants, and reasonable fees for management or administrative services rendered by Byrider. Franchisees are also required to join Company-approved local advertising co-ops and contribute as required by the co-op's bylaws. Franchisees must spend at least 2% of their Gross Sales (Byrider Vehicle Sales) on coop or local advertising, including electronic media, and Byrider may increase this Local Advertising Requirement to 3% of Franchisee's Gross Sales, subject to an Advertising Spend Cap.