What determines if a Service Center operated by a Byrider Franchisee's affiliate is located within a reasonable distance?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.17 Service Center Operations. 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 Byrider's 2025 Franchise Disclosure Document, a franchisee is generally required to operate a Service Center at their Business Location to provide repair services for vehicles purchased from their business. However, Byrider may waive this requirement if the franchisee or its affiliate operates a Service Center at another franchised Byrider location.
Whether the alternative Service Center is considered suitably located is determined at the sole discretion of Byrider. The FDD does not provide specific criteria or metrics that Byrider uses to assess what constitutes a "reasonable distance." This determination is entirely up to Byrider's judgment.
For a prospective franchisee, this means that while they might be able to avoid operating an on-site service center by using an affiliated service center, Byrider has the final say. A prospective franchisee should seek clarification from Byrider on what factors they consider when determining "reasonable distance" to ensure that any existing or planned affiliated service centers would meet their approval. This is important for business planning and potential cost considerations.