Can Byrider Franchising Partners and its affiliates receive rebates from suppliers based on franchisee sales?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners and its affiliates may negotiate purchase arrangements including prices and terms, with designated approved suppliers for Byrider Businesses. Byrider Franchising Partners and its affiliates may receive rebates or other payments from distributors, suppliers and other service providers based (directly or indirectly) on sales to franchisees. Byrider Franchising Partners was formed, and began franchising, in 2024, and thus, neither Byrider Franchising Partners nor any of its affiliates derived revenue or other material consideration from required purchases or leases of products or services from designated or approved suppliers by franchisees in 2023, and neither Byrider Franchising Partners nor its affiliates derived revenue from franchisee purchases or leases in 2023. We provide no material benefits to franchisees based on their use of approved suppliers.
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, Byrider Franchising Partners and its affiliates may negotiate purchase arrangements, including prices and terms, with designated approved suppliers for Byrider Businesses. This means Byrider can set up deals with suppliers on behalf of franchisees.
Furthermore, Byrider Franchising Partners and its affiliates may receive rebates or other payments from distributors, suppliers, and other service providers based directly or indirectly on sales to franchisees. This indicates that Byrider can benefit financially from the purchases made by its franchisees through these approved suppliers.
It is important to note that Byrider Franchising Partners was formed and began franchising in 2024. The FDD states that neither Byrider Franchising Partners nor any of its affiliates derived revenue or other material consideration from required purchases or leases of products or services from designated or approved suppliers by franchisees in 2023, nor did they derive revenue from franchisee purchases or leases in 2023. This is likely due to the fact that they had not yet begun franchising. The FDD also states that Byrider provides no material benefits to franchisees based on their use of approved suppliers.