If Byrider Franchising Partners establishes a National Advertising Fund, is franchisee contribution mandatory?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
dvertising in local and regional areas. In the future, Byrider Franchising Partners may establish, maintain and administer a National Advertising Fund to expand advertising efforts to national coverage. When and if Byrider Franchising Partners creates this fund, you must contribute to the fund as required by Byrider Franchising Partners. However, your contributions to any National Advertising Fund (if established) and your Local Advertising Requirement (as defined below) will not collectively exceed 4% of your Gross Sales (Byrider Vehicle Sales) (collectively, the "Advertising Spend Cap").
Your required payment of the Advertising Fees to Byrider Franchising Partners, as provided in Item 6, is excluded from the Advertising Spend Cap. These funds are typically spent to produce advertising materials. These funds are not used to place advertisements in any given market. Byrider Franchising Partners may increase the monthly contribution, but such increase(s) will not exceed $400.00 in t
Source: Item 11 — (FDD pages 42–50)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if Byrider Franchising Partners establishes a National Advertising Fund, franchisees must contribute to it as required by Byrider. However, the franchisee's contributions to the National Advertising Fund, if established, and the Local Advertising Requirement will not exceed 4% of Gross Sales (Byrider Vehicle Sales). This 4% is referred to as the "Advertising Spend Cap".
The required payment of Advertising Fees to Byrider Franchising Partners, as provided in Item 6, is excluded from the Advertising Spend Cap. These funds are typically spent to produce advertising materials and are not used to place advertisements in any given market. Byrider Franchising Partners may increase the monthly contribution, but such increase(s) will not exceed $400.00 in the aggregate during any 24-month period.
This means that while Byrider franchisees are obligated to contribute to a National Advertising Fund if one is created, there is a limit to how much they can be required to contribute. The total advertising expenditure, including local advertising, is capped at 4% of gross sales, providing some predictability and control over advertising costs for the franchisee. The funds paid as Advertising Fees to Byrider are separate from this cap and are used for producing advertising materials, not for placing ads.