What is Byrider's national compliance program for franchisees?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
al 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.
- 13.4 Compliance Audits. The Company may from time to time perform compliance audits reviewing operations of the Franchisee's Business, such as legal regulatory compliance issues, marketing, and adherence to Byrider, CNAC, and Service Center operational standards ("Compliance Audits" or in the singular "Compliance Audit"). If Franchisee fails a Compliance Audit, in the reasonable judgment of the Company, a failure currently meaning a score of less than 80%, Franchisee shall pay to Company a penalty in the amount of $500.00 plus reimbursement of
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider has a national compliance program that includes compliance audits. Byrider may perform these audits periodically to review the franchisee's business operations, focusing on legal and regulatory compliance, marketing practices, and adherence to Byrider, CNAC, and Service Center operational standards.
If a franchisee fails a compliance audit, defined as scoring less than 80% in Byrider's judgment, the franchisee must pay Byrider a penalty of $500, plus cover the costs of travel, food, and lodging for a second consecutive audit. If the franchisee fails the second audit, the penalty increases to $2,500, plus expenses for a third audit.
Should the franchisee fail a third consecutive compliance audit, Byrider can impose a penalty of $10,000 and has the right to terminate the Franchise Agreement. However, Byrider will provide written notice for the first occurrence of any deficiencies, allowing the franchisee five business days to correct the issue before penalties are applied.