Where in the Byrider FDD can I find information about the Technology System Fees?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
to apply any payments by the Franchisee to any past due indebtedness of the Franchisee for Royalty Fees, Advertising Fees, purchases from the Company, interest or any other indebtedness of the Franchisee. If the Company shall apply any payment by the Franchisee in a manner different from the application intended by the Franchisee, the Company shall give Franchisee written notice of how such payment was applied.
- 9.4 Technology System Fees. Concurrently with the execution of this Agreement, Franchisee has executed the Byrider Software Services and User Agreement which is attached hereto as Exhibit D (the "Software Agreement"). The Company's technology system is made up of four components: 1) Byrider Proprietary Software, 2) off-the-shelf software, 3) hardware, 4) Software as a Service (SaaS) platforms from third party providers as well as public cloud-based platforms, and 5) dealer management system with integrated mandatory Customer Relations Management provided at no additional cost to Franchisee. The Customer Relations Management assists with Agency and Direct Consumer Complaints. When Franchisee's franchised location receives an Agency Complaint (such as Better Business Bureau, Attorney General, Consumer Financial Protection Bureau, Media, or Private Attorney), Franchisee must investigate the complaint, forward the complaint to the Company's Customer Service, and timely respond to the Agency; when Franchisee's franchised location receives a Direct Consumer Complaint (i.e., Customer Service phone/email), Franchisee will investigate the complaint, resolve it directly, and timely report the results to Customer Service detailing the resolution or action taken. The Company's Compliance Department administers the Customer Service mailbox and phone line and tracks the complaints and responses. Franchisee is responsible for investigating, taking corrective action, and resolving these complaints. Franchisee must license and use the Byrider technology system necessary to operate day-to-day business. Franchisee must pay the cost of the technology system to the appropriate vendor as shown on Exhibit D, Appendix B, upon receiving invoices. Exhibit D, Appendix A, identifies the items that are typically required per franchised location. The Company may at times allow for substitution of items in Appendix A at the request of Franchisee if a substitution will not materially impact the Company's delivery of services or support but is under no obligation to do so.
- 9.5 Reputation Management Fee. Franchisee is required to pay to the Company for reputation management texts performed by the Company or its designee.
ARTICLE X
ADVERTISING AND PROMOTION
10.1 Advertising Fee. 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.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, information regarding the Technology System Fees can be found in Item 23. Specifically, it mentions that franchisees must execute the Byrider Software Services and User Agreement, which is attached as Exhibit D. This agreement outlines the costs associated with the technology system, which includes proprietary software, off-the-shelf software, hardware, SaaS platforms, and a dealer management system with integrated CRM. Franchisees are responsible for licensing and using the Byrider technology system and must pay the costs to the appropriate vendor as detailed in Exhibit D, Appendix B, upon receiving invoices. Exhibit D, Appendix A, lists the typical items required per franchised location, and substitutions may be allowed under certain conditions.
The technology system is a critical component of operating a Byrider franchise, as it supports day-to-day business operations and customer relations management. The Customer Relations Management assists with Agency and Direct Consumer Complaints. Franchisees are required to investigate complaints, forward them to the Company's Customer Service, and respond to the Agency in a timely manner. The Compliance Department manages the Customer Service mailbox and phone line, tracking complaints and responses, while franchisees are responsible for taking corrective action and resolving these complaints.
Exhibit D also contains the Byrider Software Services and User Agreement. Licensees will pay Licensor the amount specified in Appendix B, attached to the agreement, in accordance with the terms specified in Appendix B. The initial fee shall be paid within thirty days of the execution of this agreement. The conversion fee shall be paid within thirty days of the initial usage of the licensed system. The monthly usage fee shall be paid by the 15th of each month for the previous month's usage. The custom support fee shall be paid within thirty days of invoicing. The monthly usage fee and custom support fee are subject to an increase or decrease at the discretion of the Licensor. An increase per fee shall not occur more than once per calendar year and is subject to at least ninety days advance notice to the Licensee.