How should Byrider franchisees account for bulk fluids according to Chapter 6?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE XIII
REPORTS, FINANCIAL STATEMENTS, AND AUDIT RIGHTS
- 13.1 Books and Records. The Franchisee shall establish and maintain at the Franchisee's expense a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by the Company from time to time. Franchisee shall 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. Franchisee is prohibited from utilizing the bookkeeping and record system for any other business. With respect to the operation and financial condition of the Franchisee's Business, the Franchisee shall sign, verify and furnish the following reports, financial statements, and returns, to the Company in the form prescribed by the Company:
- 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.
- B. Within thirty (30) days after receipt by the Franchisee, exact copies of all audits and reports from state and local regulatory agencies; and within thirty (30) days of the filing,
exact copies of those portions of Franchisee's federal and state income tax returns that reflect the operations of the Franchisee's Business.
- 13.2 Computer Records. The Franchisee shall keep true, complete and accurate records of each transaction of any activity affecting the Franchisee's Business including, without limitation, Gross Sales (Byrider Vehicle Sales), purchases, sales and other related data as required from time to time by the Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
Based on the 2025 Byrider Franchise Disclosure Document, Chapter 6 outlines the franchisor's obligations but does not specify how franchisees should account for bulk fluids. However, Item 23, Article XIII, Section 13.1, does state that franchisees must establish and maintain a bookkeeping, accounting, and record-keeping system that conforms to the requirements prescribed by Byrider. Franchisees are required to use the accounting functions of the BYRIDER Computer Software and maintain the necessary hardware for electronic communication with Byrider's technology system. Franchisees are prohibited from using this system for any other business.
Furthermore, franchisees must furnish complete financial statements within 120 days after the end of their fiscal year, including all businesses operating in conjunction with the Business, such as ancillary products, reinsurance companies, and real estate companies. These statements should be prepared in accordance with generally accepted accounting principles. Byrider reserves the right to require audited financial statements at the franchisee's expense.
In addition to annual financial statements, franchisees must provide copies of all audits and reports from state and local regulatory agencies within 30 days of receipt, as well as copies of relevant portions of federal and state income tax returns within 30 days of filing. Franchisees must also maintain accurate records of all transactions affecting the Business, including Gross Sales, purchases, sales, and other related data, as required by Byrider.
Since the FDD does not specify how franchisees should account for bulk fluids, prospective franchisees should directly ask the franchisor about the specific accounting procedures and reporting requirements for these items to ensure compliance with Byrider's standards and to maintain accurate financial records.