Is the Byrider Franchisee required to license and use the Byrider technology system?
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.
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 license and use the Byrider technology system to operate their day-to-day business. This system is essential for managing various aspects of the franchise.
The Byrider technology system comprises several components, including proprietary software, off-the-shelf software, hardware, SaaS platforms from third-party providers, cloud-based platforms, and a dealer management system with integrated customer relations management (CRM). The CRM component assists with handling both agency and direct consumer complaints, requiring franchisees to investigate, take corrective action, and resolve these complaints.
Franchisees are responsible for covering the costs associated with the technology system by paying the appropriate vendors upon receiving invoices, as detailed in Exhibit D, Appendix B. Exhibit D, Appendix A, lists the typical items required per franchised location. While Byrider may allow substitutions for items in Appendix A under certain conditions, they are not obligated to do so.
The franchisee must also utilize the accounting functions of the BYRIDER Computer Software and install and maintain the hardware necessary to allow electronic communication between the Franchisee's technology system and the Company's technology system.