What is the maximum aggregate amount the Company can increase the monthly advertising contribution for Byrider franchisees during any 24-month period?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
he Company may at times allow for substitution of items in Appendix A at the request of Franchisee if a substitution will not materially impact the Company's delivery of services or support but is under no obligation to do so.
- 9.5 Reputation Management Fee. Franchisee is required to pay to the Company for reputation management texts performed by the Company or its designee.
ARTICLE X
ADVERTISING AND PROMOTION
10.1 Advertising Fee. Franchisee shall contribute $2,450.00 for each Business Location each month to the Company used exclusively for the promotion and advertising of the business of all franchisees of the System. All Advertising Fee money goes toward franchisees (not the Company entity). At the Company's sole discretion, the Company may increase the monthly contribution, provided that the increase(s) will not exceed $400.00 in the aggregate during any twenty-four (24)-month period. All amounts received by the Company will become the exclusive property of the Company. The Company will hold such amounts for the benefit of the Company and all Franchisees and will be expended exclusively for the promotion and advertising of the business of the Company and all franchisees of the System and Marks, consistent with this Agreement, in such manner and amounts as determined by the Company, acting in its sole discretion, but within the limitations stated above. The advertising
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees must contribute $2,450.00 monthly for each Business Location to be used for advertising. Byrider has the discretion to increase this monthly advertising contribution. However, the aggregate of these increases cannot exceed $400.00 during any 24-month period. This advertising fee is dedicated to promoting the business of all Byrider franchisees.
This means that Byrider franchisees should anticipate potential increases to their monthly advertising fees, but these increases are capped. The funds collected are to be used exclusively for advertising and promotion, benefiting both Byrider and its franchisees. This contribution is separate from any local advertising co-op contributions or the National Advertising Fund, if established, which are subject to different requirements and caps.
Prospective franchisees should consider this advertising fee and the potential for increases when evaluating the overall cost of operating a Byrider franchise. Understanding the limitations on these increases can help in financial planning and forecasting. It's also important to note that the advertising and promotional expenditures are managed by Byrider, giving them control over how these funds are spent to promote the brand and the network of franchisees.