How does the required software licensing from Byrider Franchising Partners (Item 8) affect the franchisee's ability to maintain customer data (as implied by obligations in Item 9)?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
CES OF PRODUCTS AND SERVICES**
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.
You may also purchase a starter kit from Byrider Franchising Partners' approved suppliers for a cost of approximately $2,500. This kit is assembled to facilitate the start-up phase and general operation of your Business. The starter kit currently contains posters, menu boards, springboards, and other internal decorations.
You are not required to purchase or lease any other computer equipment or software from Byrider Franchising Partners or Byrider Franchising Partners' designated
sources other than Google Workspace licenses and AnyConnect for VPN/NPA services to
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to license Byrider's Proprietary Computer Software and enter into a Software Services and User Agreement for ongoing service and support. This software is crucial for day-to-day business operations, including tracking inventory, vehicle repairs, storing customer information, processing financing, performing credit checks, and recording accounting transactions. Byrider retains ownership of the Proprietary Software, and franchisees cannot encumber it through financing arrangements.
Byrider maintains control over the software, including servicing, updating, and maintaining it. They can deny access for specific causes like viruses or performance degradation. Byrider also sets standards for the technology system's components, such as networks, security, software, and hardware, to ensure compliance across all franchises. This centralized control ensures data security and consistency but also means franchisees are dependent on Byrider for software functionality and updates.
Franchisees are responsible for investigating and resolving both Agency Complaints (e.g., Better Business Bureau) and Direct Consumer Complaints, and they must report the results to Byrider's Customer Service. The Customer Relations Management system, integrated into the dealer management system, assists with these complaints. Byrider has independent access to the data collected in the franchisee's files, which means that while franchisees handle the initial investigation and resolution of complaints, Byrider monitors and tracks these interactions. This dual access ensures compliance and provides Byrider with insights into customer service performance across the franchise system.
While franchisees are responsible for the cost of installing, maintaining, and upgrading the technology at their location, they must use Byrider's proprietary system. This includes licensing the software and paying associated fees. The franchisee must also pay the cost of the technology system to the appropriate vendor as shown on Exhibit D, Appendix B, upon receiving invoices. This setup ensures that franchisees adhere to Byrider's standards for data management and customer interaction, but it also means they have limited flexibility in choosing alternative software solutions.