What is the process for Byrider Franchising Partners to approve or disapprove of all advertising and promotional materials?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, Byrider Franchising Partners has the right to approve or disapprove of all advertising and promotional materials you propose to use. (Franchise Agreement - Article 10.1) Advertising is explained in more detail below.
You will be permitted to use and publish advertising materials only with Byrider Franchising Partners' approval. In addition, you may not alter approved advertisements except to fill in local identification information.
In addition to the Advertising Fees and contributions to any National Advertising Fund, you must, if requested by Byrider Franchising Partners, join a local advertising coop, whose membership is defined by the region of your franchised location, and make contributions to that co-op as required by the co-op's by-laws. Byrider Franchising Partners is responsible for administration of the co-op, which must operate from written governing documents that are available for review by you. As well, periodic financial statements are prepared and available for review by you. Byrider Franchising Partners has the power to require a co-op be formed, changed, dissolved or merged. Contributions you make to a co-op will be credited toward the required advertising expenditures as discussed in Article X of the Franchise Agreement and Item 6 of this Disclosure Document. As part of a co-op, you will participate in voting on how to use the funds contributed by all members. Business locations owned by Byrider Franchising Partners or its affiliates will have the same voting power as franchisees. You must spend 2% of your Gross Sales (Byrider Vehicle Sales) on co-op or local advertising (the "Local Advertising Requirement"). Byrider Franchising Partners reserves the right to raise the Local Advertising Requirement to 3% of your Gross Sales (Byrider Vehicle Sales) in the future, subject to the Advertising Spend Cap. Advertising fees must be paid in the above amounts for each Business location. All advertisements must receive Byrider Franchising Partners' approval before publication. In addition, Byrider Franchising Partners retains all ownership rights and title to all advertising materials and before publication must approve your advertisements that are not generated by Byrider Franchising Partners. Business locations owned by Byrider Franchising Partners or its affiliates currently contribute on the same basis as Business locations owned by franchisees.
Byrider Franchising Partners does not have a franchisee advisory council that advises Byrider Franchising Partners on advertising policies, though Byrider Franchising Partners may establish such a council in the future.
Source: Item 11 — (FDD pages 42–50)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners has the right to approve or disapprove all advertising and promotional materials that a franchisee proposes to use. Franchisees are permitted to use and publish advertising materials only with Byrider's approval. Furthermore, franchisees cannot alter approved advertisements, except to fill in local identification information.
In addition to advertising fees and any contributions to a National Advertising Fund, Byrider may request that franchisees join a local advertising co-op, whose membership is defined by the region of the franchised location, and contribute to that co-op as required by its bylaws. Byrider is responsible for administering the co-op, which must operate from written governing documents available for franchisee review, and periodic financial statements are also prepared and available for review. Franchisees participate in voting on how to use the funds contributed by all members of the co-op, with Byrider-owned locations having the same voting power as franchisee-owned locations.
Franchisees must spend 2% of their Gross Sales (Byrider Vehicle Sales) on co-op or local advertising, and Byrider reserves the right to raise this Local Advertising Requirement to 3% of Gross Sales in the future, subject to an Advertising Spend Cap. All advertisements must receive Byrider's approval before publication, and Byrider retains all ownership rights and title to all advertising materials, approving franchisee-generated advertisements before publication.
Prospective franchisees should note that Byrider does not currently have a franchisee advisory council that advises on advertising policies, although it may establish one in the future. Therefore, franchisees must adhere to Byrider's advertising guidelines and approval processes, ensuring all materials align with the brand's standards and comply with local advertising requirements.