factual

Is the Byrider Franchisee required to pay a reputation management fee to Byrider?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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 pay a reputation management fee to Byrider for reputation management texts performed by Byrider or its designee. This fee is in addition to other fees such as the initial franchise fee of $60,000, technology system fees, advertising fees, and royalty fees.

The technology system fees cover the costs associated with Byrider's technology system, which includes proprietary software, off-the-shelf software, hardware, SaaS platforms, and a dealer management system with integrated customer relations management. The customer relations management assists with agency and direct consumer complaints, requiring franchisees to investigate, resolve, and report on these complaints.

Franchisees also contribute to an advertising fund, with a monthly contribution of $2,450 per business location, which may increase by up to $400 in the aggregate during any 24-month period. Additionally, franchisees must spend at least 2% of their gross sales on local advertising, which Byrider may increase to 3%.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.