What is the franchisee's obligation if Byrider identifies deficiencies during an inspection?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
t to enter and inspect the Business Location at all reasonable times to observe the manner in which the Franchisee is operating the Franchisee's Business, to confer with the Franchisee's employees, vendors, suppliers, and customers and to ascertain that the operations of the Franchisee's Business comply with the performance standards established by the Company for the System. Franchisee acknowledges and agrees that, pursuant to its inspection rights under this Article 6.10 of this Agreement, Company may inspect all vehicles for sale at the Business Location and otherwise inspect Franchisee's business procedures. The Franchisee will cooperate with the Company and will promptly undertake to correct any deficiencies brought to the Franchisee's attention. The Franchisee will reimburse the Company for reasonable costs and expenses the Company may incur in correcting deficiencies that the Franchisee, after written notice, fails to correct.
- 6.11 Annual Meetings. The Company, in its discretion, will hold three meetings each year, and the Franchisee or representative must attend. The Company will notify Franchisee
of the dates and locations of these meetings, and Franchisee will be responsible for its own transportation and lodging and prorated expenses that are associated with attending these meetings. The Company reserves the right to refuse or place additional conditions on attendance at these meetings by anyone other than Franchisee and to increase or decrease the number of meetings. Franchisee may send qualified representatives to such meetings.
ARTICLE VII
OPENING AND OPERATION OF THE BUSINESS
7.1 Business Location. The Franchisee shall operate the Franchisee's Business only at the Business Location.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding deficiencies identified during inspections. Byrider retains the right to inspect vehicles for sale and the franchisee's business procedures. The franchisee must cooperate with Byrider and promptly correct any deficiencies brought to their attention.
Furthermore, if a franchisee fails to correct these deficiencies after receiving written notice, they are responsible for reimbursing Byrider for any reasonable costs and expenses Byrider incurs to correct the deficiencies. This ensures that Byrider maintains its brand standards and operational consistency across all franchise locations.
In addition to correcting deficiencies, Byrider also has the right to require the franchisee or their employees to undergo a retraining program at Byrider's training facility if the quality of their work does not meet Byrider's standards. The franchisee is responsible for covering the expenses associated with this retraining. Byrider also conducts compliance audits, and failure to meet a minimum score of 80% can result in penalties. The first failure results in a $500 penalty plus reimbursement of travel, food, and lodging for a second audit. Subsequent failures increase the penalty to $2,500 and $10,000 for the second and third consecutive failed audits, respectively, with the possibility of franchise termination after the third failure.