What activities are expressly prohibited to Byrider Franchising Partners under the Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners retains the right 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 maybe the same 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 by the Business, 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, including within your Protected Territory; (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, or by another business; and (f) engage in all other activities not expressly prohibited under the Franchise Agreement.
Source: Item 12 — (FDD pages 50–51)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners retains the right to engage in all activities not expressly prohibited under the Franchise Agreement. This means that the Franchise Agreement does not explicitly list activities that are prohibited to Byrider franchisees. Instead, it implies that franchisees are allowed to engage in any activity unless it is specifically stated as prohibited in the agreement.
This approach places the onus on prospective franchisees to carefully review the entire Franchise Agreement to understand what activities might be implicitly restricted due to other clauses or requirements. It also means that Byrider retains significant flexibility to modify or add restrictions in future versions of the agreement.
While the FDD excerpt does not provide a list of prohibited activities, it does state that Byrider Franchising Partners retains several rights, including the right to add new programs, products, and services, operate similar businesses under different brands, use the Byrider marks in other businesses, acquire similar businesses, and be acquired by a similar business. These retained rights of Byrider could potentially impact a franchisee's business, especially if Byrider chooses to operate a competing business nearby.