How does the required software licensing from Byrider Franchising Partners in Item 8 impact the ongoing fees listed in Item 6?
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, Item 8 states that franchisees must license Byrider Franchising Partners' Proprietary Computer Software and enter into a Software Services and User Agreement for ongoing service and support. This requirement directly impacts the ongoing fees detailed in Item 6, as franchisees will incur recurring fees under this Software Services and User Agreement, as noted in Item 6. These fees are payable to Byrider Franchising Partners. The software includes programs that track inventory, vehicle repairs, customer information, financing, credit checks, and accounting transactions.
Specifically, Item 6 lists several software-related fees. These include credit/debit card transaction fees ranging from $0.27 to $0.38 per transaction, Moneygram fees of $1.00 per transaction, and fees for various notices and letters ranging from $1.00 to $1.35 per item. Additionally, there are annual fees for Google Gemini licenses at $260.64 per license (two licenses per location), Google Access and Services at $129.36 per active user, and Remote VPN Software at $350 per location per user.
These fees are in addition to other potential technology-related costs. Item 11 mentions that Byrider may require franchisees to purchase certain software and support agreements directly through Byrider, especially where there is a reasonable support requirement. Furthermore, franchisees are responsible for acquiring, installing, and maintaining all technology at their location, including a stable internet connection and regular patching of operating systems and software. Franchisees may also need to periodically update technology to match current standards, which could involve additional costs.
In summary, the mandatory software licensing from Byrider Franchising Partners, as outlined in Item 8, leads to several ongoing fees listed in Item 6. These fees cover various software services, transaction processing, and annual licenses, contributing to the overall cost of operating a Byrider franchise. Prospective franchisees should carefully review Exhibit E to the Franchise Agreement, as referenced in Item 6, to fully understand the terms and costs associated with the Software Services and User Agreement.