Does Byrider Franchising Partners have the right to approve or disapprove of my advertising materials?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, Byrider Franchising Partners has the right to approve or disapprove of all advertising and promotional materials you propose to use. (Franchise Agreement - Article 10.1) Advertising is explained in more detail below.
You will be permitted to use and publish advertising materials only with Byrider Franchising Partners' approval. In addition, you may not alter approved advertisements except to fill in local identification information.
Byrider Franchising Partners is responsible for administration of the co-op, which must operate from written governing documents that are available for review by you. As well, periodic financial statements are prepared and available for review by you. Byrider Franchising Partners has the power to require a co-op be formed, changed, dissolved or merged. Contributions you make to a co-op will be credited toward the required advertising expenditures as discussed in Article X of the Franchise Agreement and Item 6 of this Disclosure Document. As part of a co-op, you will participate in voting on how to use the funds contributed by all members. Business locations owned by Byrider Franchising Partners or its affiliates will have the same voting power as franchisees. You must spend 2% of your Gross Sales (Byrider Vehicle Sales) on co-op or local advertising (the "Local Advertising Requirement"). Byrider Franchising Partners reserves the right to raise the Local Advertising Requirement to 3% of your Gross Sales (Byrider Vehicle Sales) in the future, subject to the Advertising Spend Cap. Advertising fees must be paid in the above amounts for each Business location. All advertisements must receive Byrider Franchising Partners' approval before publication. In addition, Byrider Franchising Partners retains all ownership rights and title to all advertising materials and before publication must approve your advertisements that are not generated by Byrider Franchising Partners.
Source: Item 11 — (FDD pages 42–50)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners retains the right to approve or disapprove all advertising and promotional materials that a franchisee proposes to use. Furthermore, franchisees are only permitted to use and publish advertising materials with Byrider's approval and may only alter approved advertisements to include local identification information.
This control extends to advertising co-ops, where Byrider is responsible for administration and has the power to form, change, dissolve, or merge co-ops. Franchisees are required to spend 2% of their Gross Sales (Byrider Vehicle Sales) on co-op or local advertising, and Byrider reserves the right to increase this Local Advertising Requirement to 3% in the future, subject to an Advertising Spend Cap. All advertisements, including those within a co-op, must receive Byrider's approval before publication, and Byrider retains ownership rights to all advertising materials not generated by them.
This level of oversight is common in franchising to maintain brand consistency and ensure effective marketing strategies. While franchisees have some input through co-op voting, Byrider ultimately controls advertising content and strategy. Prospective franchisees should understand that they will need to adhere to Byrider's advertising guidelines and obtain approval for their materials, which may limit their creative control but also benefit from Byrider's expertise and brand recognition.