What is the monthly advertising fee that a Byrider franchisee must contribute for each Business Location?
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 and promotional expenditures which may be made by the Company include any costs of maintaining, administering, directing and preparing promotional materials, advertising and similar public relations activities for use in television, radio, billboards, magazines, newspapers and any other medium, such costs to include fees for advertising agencies and consultants and reasonable fees for any management or administrative services rendered by the Company.
Upon request by the Company, Franchisee shall also join one or more Companyapproved local advertising co-ops and make contributions to such co-ops as required under the
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 contribute a monthly advertising fee for each Business Location. This fee is currently set at $2,450.00 per month.
The primary purpose of this advertising fee is to promote and advertise the Byrider business for all franchisees within the system. All of the advertising fee money is dedicated to the franchisees and not the company entity. Byrider retains the discretion to increase this monthly contribution, but the FDD stipulates that any increases cannot exceed a total of $400.00 within any 24-month period.
These advertising funds are managed by Byrider and are to be used exclusively for the promotion and advertising of the Byrider system and its trademarks. These expenditures can cover a wide range of promotional activities, including the creation and distribution of advertising materials across various media such as television, radio, billboards, magazines, and newspapers. The funds may also be used to cover the costs of advertising agencies, consultants, and reasonable administrative fees incurred by Byrider in managing these advertising efforts.
In addition to the mandatory advertising fee, Byrider franchisees may also be required to participate in local advertising cooperatives and contribute to those co-ops as per their bylaws. Franchisees are also required to spend a minimum of 2% of their Gross Sales (Byrider Vehicle Sales) on local advertising, which can include electronic media. Byrider has the option to increase this local advertising requirement to 3% of the franchisee's Gross Sales, but this is subject to an overall advertising spend cap.