Is there a restriction on the customers to whom a Byrider franchisee may offer goods and services?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners requires you to offer and sell only those goods and services that Byrider Franchising Partners has approved (see Item 9). You must offer all goods and services that Byrider Franchising Partners designates as required for all franchisees. Currently, franchises offer used vehicles for sale, financing and related products. Byrider Franchising Partners has the right to change the types of authorized goods and services. You will not be restricted as to customers to whom you may offer goods and services.
You may only sell and assign retail installment contracts to unaffiliated third-parties if (a) you obtain Byrider Franchising Partners' approval of the unaffiliated third-party prior to each sale or assignment, and (b) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of the Gross Sales (Byrider Vehicle Sales) during any particular calendar month.
You may only provide repair services in connection with your Service Center for vehicles purchased from Byrider-branded businesses, unless Byrider Franchising Partners approves in writing for you to service the general public.
Source: Item 16 — (FDD page 56)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider franchisees are not restricted in terms of the customers they can offer goods and services to. Byrider requires franchisees to offer and sell only approved goods and services, and franchisees must offer all goods and services that Byrider designates as required. Currently, franchises offer used vehicles for sale, financing, and related products. Byrider retains the right to change the types of authorized goods and services.
However, Byrider franchisees may only sell and assign retail installment contracts to unaffiliated third parties if they obtain Byrider's approval prior to each sale or assignment. Additionally, the contract values of these retail installment contracts cannot exceed 20% of the Gross Sales (Byrider Vehicle Sales) during any calendar month.
Furthermore, Byrider franchisees can only provide repair services in connection with their Service Center for vehicles purchased from Byrider-branded businesses, unless Byrider approves in writing for them to service the general public. This means that while there isn't a restriction on the types of customers a franchisee can serve, there are restrictions on the services they can offer to customers who did not purchase their vehicles from a Byrider-branded business, unless they receive explicit approval from Byrider.