Under what circumstances is a Byrider Franchisee not required to operate a Service Center at the Business Location?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
7.17 Service Center Operations. The Franchisee must operate a Service Center at the Business Location. The Franchisee may only provide repair service for vehicles purchased from Businesses, unless the Company approves in writing for the Franchisee to service the general public. Notwithstanding the foregoing, the Franchisee will not be required to operate a Service Center at the Business Location so long as the Franchisee or its affiliate operates a Service Center at another Business under a franchise agreement with the Company and the Company determines in its sole discretion that such Service Center is located within a reasonable distance to service customers of the Franchisee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are generally required to operate a service center at their business location. However, there is an exception to this rule. A Byrider franchisee is not required to operate a service center at their primary business location if they (or an affiliate) operate a service center at another Byrider business under a franchise agreement with the company.
This exception is contingent on Byrider determining, in its sole discretion, that the existing service center is located within a reasonable distance to adequately service customers of the franchisee's location. This determination is made by Byrider, giving them the authority to decide if the existing service center is sufficient to meet the needs of the new location's customers.
For a prospective franchisee, this could mean a reduced initial investment and lower operational overhead if they can leverage an existing service center. However, it also introduces a dependence on Byrider's approval and the performance of the other service center. A potential franchisee should carefully consider the location of the existing service center and its capacity to handle additional customers before relying on this exception. It would be prudent to discuss this in detail with Byrider during the due diligence process to understand their criteria for determining 'reasonable distance' and service capacity.