Who determines if a Byrider franchisee's affiliated service center is located within a reasonable distance to service customers?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee must operate a Service Center at the Business Location. The Franchisee may only provide repair service for vehicles purchased from Businesses, unless the Company approves in writing for the Franchisee to service the general public. Notwithstanding the foregoing, the Franchisee will not be required to operate a Service Center at the Business Location so long as the Franchisee or its affiliate operates a Service Center at another Business under a franchise agreement with the Company and the Company determines in its sole discretion that such Service Center is located within a reasonable distance to service customers of the Franchisee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider determines whether a franchisee's affiliated service center is located within a reasonable distance to service customers. Specifically, a franchisee is generally required to operate a service center at their business location. However, this requirement is waived if the franchisee or its affiliate operates a service center at another Byrider location under a franchise agreement.
In this case, Byrider has the sole discretion to determine if that existing service center is located within a reasonable distance to adequately serve the customers of the new franchise. This determination is made by Byrider itself, not by the franchisee or any third party.
This clause provides Byrider with significant control over the service operations of its franchisees, allowing them to ensure adequate service coverage without mandating redundant service centers in close proximity. For a prospective franchisee, this means that the location of existing affiliated service centers could impact the requirement to establish a new service center at their own location, potentially affecting initial investment and operational costs. It is important to note that Byrider's decision on what constitutes a 'reasonable distance' is final, so franchisees should seek clarity on this matter during the franchise agreement process.