For how long must a Byrider franchisee retain records related to their business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3 Audit of Books and Records. All records shall be kept for a period of at least three (3) years following the end of each calendar year.
The Company may, from time to time, cause one or more complete audits to be made of the affairs and records relating to the operations of the Franchisee's Business.
Upon request by the Company, the Franchisee shall make such books, records and information available to the Company or its designated representative at all reasonable times for review and audit by the Company at the Business Location.
In the event that an audit by the Company was triggered because of Franchisee's failure to provide the reports required under this Agreement, results in a determination that the Royalty Fee and/or Advertising Fees paid to the Company are deficient (underpaid) by more than 2%, or the Company reasonably concludes that the deficient payment was intentional or grossly negligent by the Franchisee, the Franchisee shall promptly pay to the Company an amount equal to three (3) times the Royalty Fee and/or Advertising Fee shown to be due and all costs and expenses incurred by the Company in conducting such audit, including salaries of the Company's representatives, travel costs, room and board and audit fees.
Nothing contained herein shall constitute an agreement by the Company to accept any payments after the same are due or a commitment by the Company to extend credit to or otherwise finance the Franchisee's operation of the Franchisee's Business.
The Company agrees that the penalties referred to herein shall not apply to any deficiencies referred to herein for the first occurrence if said occurrence is cured within five (5) business days upon written notice by the Company to the Franchisee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to maintain all business records for a minimum of three years following the end of each calendar year. This requirement ensures that Byrider has access to necessary information for auditing purposes and to verify the accuracy of royalty and advertising fee payments.
Byrider franchisees must keep true, complete, and accurate records of all transactions affecting their business, including gross sales, purchases, and other related data as required by Byrider. These records must be maintained using a bookkeeping, accounting, and record-keeping system that conforms to Byrider's requirements and utilizes the accounting functions of the Byrider Computer Software.
Byrider has the right to audit these records and can request access to them at any reasonable time. If an audit reveals that the franchisee has underpaid royalty or advertising fees by more than 2%, or if the underpayment was intentional or grossly negligent, the franchisee may be required to pay three times the deficient amount, as well as all costs associated with the audit. Maintaining accurate and accessible records is therefore crucial for Byrider franchisees to avoid potential penalties and ensure compliance with the franchise agreement.