What disclaimer does Byrider make regarding the potential success of the franchisee's business operations?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
DISCLOSURE ACKNOWLEDGMENT STATEMENT
BYRIDER FRANCHISING PARTNERS, LLC ("Franchisor"), through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights ("Franchisee"), fully understands and comprehends that the purchase of a BYRIDER sales finance franchise is a business decision, complete with its associated risks, and (b) that Franchisee is not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by the Franchisor. In that regard, the undersigned acknowledges that:
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- The Franchisee recognizes and understands that business risks, which exist in connection with the purchase of any business, make the success or failure of the franchise subject to many variables, including, among other things, the skills and abilities of the Franchisee, the hours worked by the Franchisee, competition, interest rates, the economy, inflation, business location, operation costs, lease terms and costs and the market place. The Franchisee hereby acknowledges its awareness of and willingness to undertake these business risks.
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- The Franchisee acknowledges receipt of the Franchisor's Franchise Disclosure Document and Exhibits (collectively, the "FDD"). The Franchisee acknowledges that it has had the opportunity to personally and carefully review these documents. Furthermore, the Franchisee has been advised to seek professional assistance, to have professionals review the documents and to consult with other franchisees regarding the risks associated with the purchase of the franchise.
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- The Franchisee agrees and states that the decision to enter into this business risk is in no manner predicated upon any oral representations, assurances, warranties, guarantees or promises made by the Franchisor or any of its officers, employees or agents (including any franchise broker) as to the likelihood of success of the franchise.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider acknowledges that the success or failure of the franchise is subject to various business risks and other variables. These risks include the franchisee's skills and abilities, the number of hours the franchisee works, competition, interest rates, the economy, inflation, the business location, operating costs, lease terms and costs, and the marketplace. Byrider emphasizes that franchisees should be aware of and willing to undertake these business risks.
Byrider also states that the decision to invest in the franchise should not be based on any oral representations, assurances, warranties, guarantees, or promises made by Byrider or its representatives regarding the likelihood of success. Byrider clarifies that franchisees should not rely on any information concerning actual, average, projected, or forecasted franchise sales, profits, or earnings unless it is explicitly contained in the Franchise Disclosure Document. This is a common disclaimer in franchising, intended to prevent franchisees from claiming they were misled by overly optimistic projections not included in the official FDD.
Furthermore, the FDD states that Byrider franchisees recognize that the nature of the business may evolve and change over time, and that the success of the venture depends primarily on the franchisee's business ability and efforts, as well as other factors beyond Byrider's control. Byrider also states that no representations have been made regarding future or past income, expenses, sales volume, or potential profitability, earnings, or income of the business franchised, other than what is provided in Item 19 of the Franchise Disclosure Document. This reinforces the importance of carefully reviewing Item 19, which contains financial performance representations, and conducting thorough due diligence before investing in a Byrider franchise.