For a Byrider franchise, what is the franchisee's obligation regarding payment of invoices from the company and other vendors?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
9.3 Payment.
- A. The Franchisee shall pay all invoices from the Company and all other vendors when due.
- B. All Royalties, Advertising Fees and other amounts that the Franchisee owes to the Company or its affiliates shall bear interest after the due date at the highest legal rate for open account business credit. The Franchisee acknowledges that this paragraph shall not constitute an agreement by the Company or its affiliates to accept such payments after the same are due or a commitment by the Company to extend credit to or otherwise finance the Franchisee's operations of the Franchisee's Business. Acceptance by the Company of any payment by the Franchisee in an amount less than the full amount due shall not constitute acceptance as payment in full and shall not constitute a waiver of any amounts remaining due to the Company. Further, the Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement as provided herein notwithstanding the provisions of this paragraph.
- C. Notwithstanding any designation by the Franchisee, the Company shall have the sole discretion 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.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to pay all invoices from Byrider and other vendors when they are due. If a franchisee fails to pay royalties, advertising fees, or other amounts owed to Byrider or its affiliates, these overdue amounts will accrue interest at the highest legal rate for open account business credit. This late payment does not obligate Byrider to accept the payments or extend credit to finance the franchisee's operations.
Furthermore, Byrider's acceptance of a payment that is less than the full amount due does not constitute a waiver of the remaining balance owed. Failure to pay all amounts when due can be grounds for termination of the Franchise Agreement. Byrider has the discretion to apply any payments made by the franchisee to any past due debts, including royalty fees, advertising fees, purchases from Byrider, or interest, regardless of any designation made by the franchisee.
If Byrider applies a payment differently than the franchisee intended, Byrider will provide written notice to the franchisee explaining how the payment was applied. This ensures transparency in financial transactions between Byrider and its franchisees. Franchisees should maintain diligent records of all payments and invoices to ensure accurate accounting and compliance with the Franchise Agreement.