Under what condition 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, a franchisee is generally required to operate a service center at their business location to provide repair services for vehicles purchased from their Byrider business. However, there is an exception to this rule.
A Byrider franchisee will not be required to operate a service center at their primary business location if they (or an affiliate) operate a service center at another Byrider location under a franchise agreement with the company. In this case, Byrider must determine, in its sole discretion, that the existing service center is located within a reasonable distance to adequately service customers of the franchisee's other business location.
This exception offers flexibility for franchisees who operate multiple Byrider locations, potentially allowing them to consolidate service operations and reduce costs. However, it's important to note that Byrider retains the sole discretion to determine whether the existing service center is suitably located to serve the customers of the other franchise. A prospective franchisee should discuss with Byrider what constitutes a 'reasonable distance' in their specific market and how this determination is made.