If Byrider applies a payment differently than intended by the Franchisee, what is Byrider required to do?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Notwithstanding any designation by the Franchisee, the Company shall have the sole discretion to apply any payments by the Franchisee to any past due indebtedness of the Franchisee for Royalty Fees, Advertising Fees, purchases from the Company, interest or any other indebtedness of the Franchisee. If the Company 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.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider has the authority to allocate a franchisee's payments towards any outstanding debts, including royalty fees, advertising fees, purchases, or interest. This applies regardless of any specific designation the franchisee might have intended for the payment.
However, if Byrider applies a payment in a manner that differs from what the franchisee intended, Byrider is obligated to provide the franchisee with written notice explaining how the payment was actually applied. This ensures the franchisee is informed about the allocation of their funds and can reconcile their accounts accordingly.
This policy is important for prospective franchisees to understand, as it gives Byrider discretion in how payments are applied, potentially impacting the franchisee's financial standing with the company. Franchisees should maintain careful records of their intended payment allocations and compare them against the written notices received from Byrider to ensure accuracy and address any discrepancies promptly.