According to the Byrider franchise agreement, who owns the rights to the Marks?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
e "Protected Territory"); provided that the Company may operate and grant franchises for the operation of Businesses in the Protected Territory if the Company delivers a notice of default under this Agreement and Franchisee does not cure the default within the applicable cure period, if any.
- 4.2 Retention of Rights. Except as explicitly and specifically granted to the Franchisee herein, all rights in and to the Marks, the System, and the Business and the goodwill associated with each of them is hereby reserved to the Company. Franchisee is not granted any rights by implication, innuendo, extension or extrapolation. Specifically, but without limitation, the Company retains the right, but shall not be obligated, to:
- A. Add new programs, products and/or services to the Business at any time;
- B. Establish, operate and franchise a business offering and selling products and/or services which may be the same as or similar to the products and services offered by the Business under any trade names, trademarks, service marks or logos other than the Marks;
- C. Use or license the use of the Marks in business other than the Business;
- D. Acquire the assets or ownership interests of one or more businesses providing products and services similar to those provided at the Business Locations, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating;
- E. Be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at the Business Locations, or by another business; and
- F. Engage in all other activities not expressly prohibited by this Agreement.
Nothing in this Agreement limits the Company's rights to sell, distribute and/or to provide products and services of any kind, under the Marks or otherwise, anywhere except at the Business Location.
- 4.3 Relocation. The Franchisee's Business is granted for a specific location, or a location to be approved by the Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider Franchising Partners, LLC retains ownership of all rights pertaining to the Marks. The Marks include the names "CNAC", "CNAC CARNOW ACCEPTANCE COMPANY", "CNAC CARNOW ACCEPTANCE COMPANY plus the design", "BYRIDER" and "BYRIDER plus the design" and the trademarks, service marks, logos, and trade names used in connection with the Byrider system.
This means that while a franchisee is granted a license to use these Marks as part of their franchise agreement, they do not own them. Byrider retains the right to use the Marks in other business ventures, to license their use to others, and to modify or develop them further. The franchisee's rights to use the Marks are specifically limited to the operation of their Byrider franchise at the specified location.
This is a standard arrangement in franchising, as it allows Byrider to maintain control over its brand and ensure consistent quality and standards across all franchise locations. It also enables Byrider to evolve the brand and system over time without being restricted by individual franchisee ownership claims. The franchisee's investment is in the right to operate under the established brand and system, not in the ownership of the brand itself.
Prospective franchisees should understand that their use of the Marks is subject to the terms and conditions of the franchise agreement and that any unauthorized use could result in legal action. They should also be aware that Byrider has the right to modify the System, including the Marks, and that franchisees are expected to adhere to these changes.