Is a Byrider Franchisee required to operate a Service Center at the Business Location?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.17 Service Center Operations. The Franchisee must operate a Service Center at the Business Location. The Franchisee may only provide repair service for vehicles purchased from Businesses, unless the Company approves in writing for the Franchisee to service the general public. Notwithstanding the foregoing, the Franchisee will not be required to operate a Service Center at the Business Location so long as the Franchisee or its affiliate operates a Service Center at another Business under a franchise agreement with the Company and the Company determines in its sole discretion that such Service Center is located within a reasonable distance to service customers of the Franchisee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are generally required to operate a service center at their business location. This service center is specifically for repairing vehicles sold by Byrider businesses, ensuring quality control and customer service. However, Byrider may approve in writing for a franchisee to service the general public.
There is an exception to this requirement. A Byrider franchisee is not required to operate a service center at their business location if they or an affiliate operates a service center at another Byrider franchise location. This is contingent on Byrider determining, at its sole discretion, that the existing service center is within a reasonable distance to adequately service customers of the new franchise.
This exception provides some flexibility for franchisees who may already have service capabilities in close proximity. However, it's important to note that Byrider retains the sole discretion to decide if the existing service center is suitably located to serve the new location's customers. Prospective franchisees should discuss this exception with Byrider to understand the specific criteria used to determine 'reasonable distance' and ensure they meet the necessary requirements if they plan to rely on an existing service center.