What is the Byrider franchisee's accountability according to Chapter 10?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
ARTICLE X
ADVERTISING AND PROMOTION
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Article X discusses advertising and promotion, while section 9.4 outlines the franchisee's responsibilities regarding complaints. When a Byrider franchisee's location receives an agency complaint, such as from the Better Business Bureau, Attorney General, Consumer Financial Protection Bureau, media, or a private attorney, the franchisee is obligated to investigate the complaint and forward it to Byrider's Customer Service department. The franchisee must also respond to the agency in a timely manner. Similarly, if the franchised location receives a direct consumer complaint via phone or email, the franchisee is responsible for investigating the complaint, resolving it directly, and reporting the resolution or action taken to Customer Service in a timely fashion.
Byrider's Compliance Department manages the Customer Service mailbox and phone line, tracking all complaints and responses. The franchisee bears the responsibility for investigating, taking corrective action, and resolving these complaints. Furthermore, the franchisee is required to license and use the Byrider technology system to manage day-to-day business operations.
In addition to handling complaints, Byrider franchisees must pay the costs associated with the technology system to the appropriate vendor upon receiving invoices, as detailed in Exhibit D, Appendix B. Exhibit D, Appendix A, lists the items typically required per franchised location. While Byrider may allow substitutions for these items at the franchisee's request, they are not obligated to do so if the substitution would materially impact the delivery of services or support. Franchisees are also required to pay a reputation management fee to Byrider for reputation management texts performed by Byrider or its designee.