What kind of advertising support does Byrider Franchising Partners provide to franchisees?

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In addition to the Advertising Fees and contributions to any National Advertising Fund, you must, if requested by Byrider Franchising Partners, join a local advertising coop, whose membership is defined by the region of your franchised location, and make contributions to that co-op as required by the co-op's by-laws. 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. Business locations owned by Byrider Franchising Partners or its affiliates currently contribute on the same basis as Business locations owned by franchisees.

Byrider Franchising Partners does not have a franchisee advisory council that advises Byrider Franchising Partners on advertising policies, though Byrider Franchising Partners may establish such a council in the future.

Technology System. The Byrider Franchising Partners technology system is made up of four components: 1) Byrider Franchising Partners Proprietary Software, 2) off-the-shelf (third party) software, 3) local and centralized hardware, and 4) dealer management system with integrated mandatory Customer Relations Management provided at no additional cost to you. The Customer Relations Management assists with Agency and Direct Consumer Complaints. When you receive an Agency Complaint (such as Better Business Bureau, Attorney General, Consumer Financial Protection Bureau, Media, or Private Attorney), you must investigate the complaint, forward the complaint to Byrider Franchising Partners' Customer Service, and timely respond to the Agency; when you receive a Direct Consumer Complaint (i.e., Customer Service phone/email), you will investigate the complaint, resolve it directly, and timely report the results to Customer Service detailing the resolution or action taken. Byrider Franchising Partners' Compliance Department administers the Customer Service mailbox and phone line and tracks the complaints and responses. You are responsible for investigating, taking corrective action, and resolving these complaints. You must license and use the Byrider Franchising Partners technology system necessary to operate your day-to-day business (Franchise Agreement - Article 9.4) and maintain required records (Franchise Agreement - Articles 13.1 - 13.2). Byrider Franchising Partners will have independent access to the data collected in your files.

The cost of technology implemented at the franchise location is the sole responsibility of the franchisee to install, maintain and upgrade.

Source: Item 11 — (FDD pages 42–50)