Does Byrider's acceptance of a partial payment constitute a waiver of the remaining balance due?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. All Royalties, Advertising Fees and other amounts that the Franchisee owes to the Company or its affiliates shall bear interest after the due date at the highest legal rate for open account business credit. The Franchisee acknowledges that this paragraph shall not constitute an agreement by the Company or its affiliates to accept such payments after the same are due or a commitment by the Company to extend credit to or otherwise finance the Franchisee's operations of the Franchisee's Business. Acceptance by the Company of any payment by the Franchisee in an amount less than the full amount due shall not constitute acceptance as payment in full and shall not constitute a waiver of any amounts remaining due to the Company. Further, the Franchisee acknowledges that its failure to pay all amounts when due shall constitute grounds for termination of this Agreement as provided herein notwithstanding the provisions of this paragraph.
- C. Notwithstanding any designation by the Franchisee, the Company shall have the sole discretion to apply any payments by the Franchisee to any past due indebtedness of the Franchisee for Royalty Fees, Advertising Fees, purchases from the Company, interest or any other indebtedness of the Franchisee. If the Company shall apply any payment by the Franchisee in a manner different from the application intended by the Franchisee, the Company shall give Franchisee written notice of how such payment was applied.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the acceptance of a partial payment by Byrider does not constitute a waiver of the remaining balance due. Specifically, the FDD states that acceptance by Byrider of any payment in an amount less than the full amount due does not constitute acceptance as payment in full and does not constitute a waiver of any amounts remaining due to Byrider.
This means that even if a Byrider franchisee makes a partial payment, they are still responsible for the full outstanding balance. Byrider retains the right to pursue the remaining balance, and the franchisee's failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement. This clause protects Byrider's financial interests by ensuring they can collect the full amount owed, even if they accept a partial payment.
Furthermore, Byrider has the sole discretion to apply any payments made by the franchisee to any past due indebtedness, such as Royalty Fees, Advertising Fees, purchases from Byrider, interest, or any other debt. If Byrider applies a payment differently than the franchisee intended, Byrider will provide written notice to the franchisee explaining how the payment was applied. This provision gives Byrider control over how payments are allocated, ensuring that older debts can be prioritized. This is a standard practice in franchising to protect the franchisor's revenue streams and maintain financial stability within the franchise system.