Are Byrider franchisees required to purchase certain supplies from sources approved by Byrider Franchising Partners?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
yed and sold at the Business.
- C. Approved Suppliers. Byrider Franchising Partners may suggest sources that will supply promotional materials, agreements, signs, stationery, and other items necessary for you to operate the Business. The suggested supply source for any item may be either Byrider Franchising Partners or a third party. For your benefit, Byrider Franchising Partners negotiates purchase terms, including favorable price terms, with the approved suppliers. You must purchase certain supplies from sources approved by Byrider Franchising Partners.
If you want to purchase products or services from sources not recommended or approved by Byrider Franchising Partners, you must submit samples and specifications to Byrider Franchising Partners for testing to determine whether the products or services comply with Byrider Franchising Partners' standards and specifications, which Byrider Franchising Partners may periodically modify. You must obtain Byrider Franchising Partners' prior written approval before you use or sell any unapproved products or services. There are no fees or any additional procedures to secure approval to purchase from alternative suppliers. Byrider Franchising Partners may, in its discretion, share such standards and specifications with you and/or approved suppliers, but it is not obligated to do so. Byrider Franchising Partners maintains a list of criteria for reviewing and approving products, services, and suppliers; however, Byrider Franchising Partners does not issue this criteria to you and such criteria for approving suppliers is not available to franchisees. Byrider Franchising Partners will not unreasonably withhold approval and will notify you within 30 days of your request that it has approved or rejected your proposed vendor or supplier. If Byrider Franchising Partners rejects the proposed vendor or supplier, it will give you the reasons for rejection. If Byrider Franchising Partners approves an alternative supplier or product or service, Byrider Franchising Partners may revoke such approval upon 90 days' written notice.
Except for the technology system, there are currently no goods, services, supplies, fixtures, equipment, inventory or real estate for establishing your Business that you must purchase or lease from Byrider Franchising Partners. However, to maintain the quality of goods and services provided by Byrider Businesses and the reputation of the System, Byrider Franchising Partners periodically may require you to purchase or lease other services, equipment, products, materials and supplies that meet specifications and, for some items, Byrider Franchising Partners may require you to purchase or lease from suppliers that Byrider Franchising Partners approves or designates. Except for Grade A Auto Parts (our Chairman, Sean M. Garber, owns an interest), there currently are no suppliers of products, services, equipment, supplies or materials that you must or may purchase in operating the Business in which any officer identified in Item 2 owns an interest.
At Byrider Franchising Partners' discretion, you may participate in Byrider Franchising Partners' Collateral Protection Insurance ("CPI") program that is operated by Byrider Franchising Partners' approved third-party reinsurance entity.
Your purchases from designated or approved suppliers (including us and our affiliates) or in accordance with our standards and specifications are estimated to be 95% to 100% of your total purchases in establishing the Business, and approximately 95% to 100% of your on-going purchases in operating the Business.
You should be aware that there may be price increases in any of the items you must purchase from suppliers and other third parties. Byrider Franchising Partners does not know of any pending price increases, but Byrider Franchising Partners cannot guarantee that increases will not occur.
As of the date of this Disclosure Document, there are no purchasing or distribution cooperatives for any of the items described above.
D. Purchase Agreements, Material Benefits and Revenue.
Byrider Franchising Partners and its affiliates may negotiate purchase arrangements including prices and terms, with designated approved suppliers for Byrider Businesses.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 36–40)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to purchase certain supplies from sources approved by Byrider Franchising Partners. Byrider may suggest sources for promotional materials, agreements, signs, stationery, and other items necessary to operate the business, which may be either Byrider itself or a third party. Byrider negotiates purchase terms, including favorable pricing, with these approved suppliers for the franchisee's benefit.
If a franchisee wishes to purchase products or services from sources not recommended or approved by Byrider, they must submit samples and specifications to Byrider for testing to ensure compliance with Byrider's standards, which may be modified periodically. Prior written approval from Byrider is required before using or selling any unapproved products or services. There are no fees or additional procedures to secure approval from alternative suppliers. Byrider will notify the franchisee within 30 days of their request whether the proposed vendor or supplier has been approved or rejected, providing reasons for rejection if applicable. Approvals may be revoked with 90 days' written notice.
Except for the technology system, there are currently no goods, services, supplies, fixtures, equipment, inventory or real estate for establishing the Business that you must purchase or lease from Byrider Franchising Partners. However, to maintain the quality of goods and services provided by Byrider Businesses and the reputation of the System, Byrider Franchising Partners periodically may require you to purchase or lease other services, equipment, products, materials and supplies that meet specifications and, for some items, Byrider Franchising Partners may require you to purchase or lease from suppliers that Byrider Franchising Partners approves or designates. Franchisees' purchases from designated or approved suppliers or in accordance with Byrider's standards and specifications are estimated to be 95% to 100% of their total purchases in establishing the Business, and approximately 95% to 100% of their on-going purchases in operating the Business.
Franchisees must license Byrider's Proprietary Computer Software and enter into a Software Services and User Agreement with Byrider for ongoing service and support. Franchisees may also purchase a starter kit from Byrider's approved suppliers for approximately $2,500, containing items like posters, menu boards, and internal decorations. Franchisees are not required to purchase other computer equipment or software from Byrider, except for Google Workspace licenses and AnyConnect for VPN/NPA services to use the Proprietary Software. Franchisees are also required to maintain certain types of insurance coverage through licensed and admitted insurance companies acceptable to Byrider Franchising Partners.