Must the financial statements provided by a Byrider franchisee include all businesses that operate in conjunction with the Byrider business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Within one hundred twenty (120) days after the end of the Franchisee's fiscal year, complete financial statements for such fiscal year, and such financial statements shall include all businesses that operate in conjunction with or in relation to the Business, including ancillary products, reinsurance companies, and real estate companies. If Franchisee uses a third party accounting firm to review or audit, then those reports prepared by the third party must be furnished. If no third party is engaged, then the statements prepared internally must be furnished. Such annual statements shall be prepared in accordance with generally accepted principles applied on a consistent basis. The Company reserves the right to require that such financial statements be audited by independent Certified Public Accountants at the Franchisee's expense.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, franchisees must provide complete financial statements that include all businesses operating in conjunction with the Byrider business. This requirement extends to businesses related to ancillary products, reinsurance companies, and real estate companies. These financial statements must be submitted within 120 days after the end of the franchisee's fiscal year.
If a third-party accounting firm is used for review or auditing, the reports prepared by that firm must be furnished to Byrider. If no third party is engaged, the internally prepared statements must be provided. These annual statements must adhere to generally accepted accounting principles applied consistently. Byrider retains the right to demand that these financial statements undergo an audit by independent Certified Public Accountants, with the franchisee bearing the expense.
This requirement ensures that Byrider has a comprehensive view of the franchisee's financial health and overall business operations, including any related ventures that could impact the Byrider business. For a prospective franchisee, this means maintaining meticulous records for all related business activities and being prepared to potentially incur the cost of an independent audit if required by Byrider.