What are the ongoing service and support obligations of Byrider Franchising Partners related to the proprietary software (Item 8) and how are these obligations listed in Item 11?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Proprietary Computer Software and Starter Kit. You must license Byrider Franchising Partners' Proprietary Computer Software from Byrider Franchising Partners and enter into a Software Services and User Agreement (see Exhibit E attached to the Franchise Agreement) with Byrider Franchising Partners for ongoing service and support to the Proprietary Software and all other components of the technology system. Byrider Franchising Partners does not provide lease packages for its Proprietary Software but may provide you with a list of third parties that offer lease packages for the entire technology system as described in Item 11. Any financing you arrange for the purchase or lease of the technology system may not contain terms that encumber the Proprietary Software in any way. Under no circumstances will the ownership rights to the Proprietary Software change from Byrider Franchising Partners to you or to a third party.
Byrider Franchising Partners owns the Proprietary Software. Byrider Franchising Partners has the sole right to service, update and maintain the Proprietary Software. Byrider Franchising Partners has the right to immediately deny access for specific causes, such as viruses, hackers, or performance degradation. Byrider Franchising Partners maintains a specific level of standards for networks, security, software, hardware, and other features that all franchisees must be in compliance with. These standards are required to facilitate the common services provided by Byrider Franchising Partners, and to minimize disruptions or security concerns throughout the franchise community. Other than the Proprietary Software, Byrider Franchising Partners has no contractual obligation for maintenance, repairs, updates or upgrades to the remaining components to your technology system. We currently estimate that it will cost $5,000 to $40,000 to purchase or lease hardware, software and other components of the technology system and the annual cost of maintenance, repairing, updating and upgrading the technology system will likely range from $0 to $75,000.
The Byrider Franchising Partners Software consists of programs specially designed to the needs of your Business, and it includes programs that keep track of inventory and vehicle repairs, store customer information, assist in processing financing to customers, perform credit checks and record accounting transactions. Byrider Franchising Partners will have unlimited independent access to the sales and vehicle repair information stored in your files. (Franchise Agreement - Article 13.2).
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- Technology Installation. You will be responsible for acquiring, installing and maintaining all technology at your location. A stable, business-class internet connection (preferably redundant connections) will be required to access technology resources hosted by Byrider Franchising Partners or third-party providers. Byrider Franchising Partners will provide VPN client access for a fee on a per-user basis (Franchise Agreement Article 13.2). You are required to maintain a secure environment with regular patching of Operating Systems and software. You may be required to periodically update technology (both hardware and software) at your location to match the current standards as they evolve over time. Byrider Franchising Partners will assist you in the installation of the Proprietary Software in connection with your technology system.
Byrider Franchising Partners may also require that you purchase certain software and support agreements directly through Byrider Franchising Partners. This is required only where there is a reasonable support requirement.
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners owns the Proprietary Software and has the sole right to service, update, and maintain it. They can deny access for specific causes like viruses, hackers, or performance degradation. Byrider maintains standards for networks, security, software, and hardware that franchisees must comply with to facilitate common services and minimize disruptions.
Byrider's software consists of programs designed for the business, including inventory and vehicle repair tracking, customer information storage, financing assistance, credit checks, and accounting transaction recording. Byrider will have unlimited independent access to sales and vehicle repair information stored in the franchisee's files.
Item 8 states that franchisees must license Byrider's Proprietary Computer Software and enter into a Software Services and User Agreement with Byrider for ongoing service and support to the Proprietary Software and all other components of the technology system. Byrider may provide a list of third parties that offer lease packages for the entire technology system as described in Item 11. The franchisee cannot encumber the Proprietary Software in any financing arrangement, and ownership rights to the Proprietary Software will not change from Byrider to the franchisee or a third party. Byrider may also require franchisees to purchase certain software and support agreements directly through Byrider where there is a reasonable support requirement.
Franchisees are responsible for acquiring, installing, and maintaining all technology at their location, including a stable internet connection. Byrider will provide VPN client access for a fee on a per-user basis. Franchisees must maintain a secure environment with regular patching of operating systems and software and may be required to periodically update technology to match current standards. Byrider will assist in the installation of the Proprietary Software in connection with the franchisee's technology system.