How should Byrider franchisees handle customer concerns related to CNAC?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
ARTICLE X
ADVERTISING AND PROMOTION
10.1 Advertising Fee. Franchisee shall contribute $2,450.00 for each Business Location each month to the Company used exclusively for the promotion and advertising of the business of all franchisees of the System. All Advertising Fee money goes toward franchisees (not the Company entity). At the Company's sole discretion, the Company may increase the monthly contribution, provided that the increase(s) will not exceed $400.00 in the aggregate during any twenty-four (24)-month period. All amounts received by the Company will become the exclusive property of the Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Customer Relations Management system assists with both Agency and Direct Consumer Complaints. When a Byrider franchisee 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, forward it to Byrider's Customer Service, and respond to the agency in a timely manner. For Direct Consumer Complaints received directly by the franchisee's location via phone or email, the franchisee must investigate the complaint, resolve it directly, and report the resolution or action taken to Customer Service in a timely manner.
Byrider's Compliance Department manages the Customer Service mailbox and phone line, tracking all complaints and responses. The franchisee is ultimately responsible for investigating, taking corrective action, and resolving these complaints. This process is facilitated by the Byrider technology system, which the franchisee is required to license and use.
CNAC personnel, including Underwriters, Finance Managers, Account Representatives (Collectors), or Portfolio Managers, receive specific training. This training covers the Byrider/CNAC business model, operating standards, collection techniques, legal issues, and administrative responsibilities related to data security. The training also includes hands-on reviews of underwriting decisions, practice in the Discover system, and role-playing of collection scenarios. This comprehensive approach ensures that both Byrider franchisees and CNAC personnel are equipped to handle customer concerns effectively and in compliance with established standards.