How does the required software licensing from Byrider Franchising Partners (Item 8) affect the franchisee's ability to track sales and inventory (as implied by obligations in Item 9)?
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.
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).
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 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.
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, franchisees are required to license Byrider's Proprietary Computer Software. This software is essential for tracking inventory, vehicle repairs, customer information, processing financing, performing credit checks, and recording accounting transactions. Byrider retains the sole right to service, update, and maintain this software, and can deny access for specific causes like viruses or performance degradation. This ensures that all franchisees comply with specific standards for networks, security, software, and hardware, which minimizes disruptions and security concerns.
This mandatory software licensing directly impacts a franchisee's ability to manage their business operations. The Proprietary Software is designed specifically for the needs of a Byrider business, providing tools to monitor sales, manage vehicle repairs, and store customer data. Byrider also has unlimited independent access to the sales and vehicle repair information stored in the franchisee's files. This access allows Byrider to oversee operations and potentially offer support or identify areas for improvement.
The franchisee is responsible for acquiring, installing, and maintaining all technology at their location, including a stable internet connection. While Byrider assists with the installation of the Proprietary Software, the franchisee bears the cost of technology implementation, including maintenance and upgrades. They must also maintain a secure environment with regular patching of operating systems and software. Byrider may require franchisees to purchase certain software and support agreements directly through them, especially where there is a reasonable support requirement.
In summary, the required software licensing ensures that Byrider franchisees use a standardized system for tracking sales and inventory, which is crucial for maintaining brand consistency and operational efficiency. However, franchisees must be prepared to invest in the necessary technology infrastructure and ongoing maintenance to comply with Byrider's standards and effectively utilize the Proprietary Software.