How does the Byrider agreement affect the personal guarantees provided by the Guarantors?

According to Byrider's 2025 Franchise Disclosure Document, the personal guarantees provided by the Guarantors are significantly impacted by the franchise agreement, particularly concerning the Finance Entity's operations. The Guarantors agree that their guarantee of the franchisee's performance extends to both the Finance Entity and the franchisee. This means that any reference to "franchisee" in the Guarantee Agreement is considered a reference to both the Finance Entity and the franchisee.

Specifically, the consent granted by Byrider to allow the Finance Entity to operate does not separate accountability for the franchisee's obligations as outlined in the Franchise Agreement. Both the Finance Entity and the franchisee acknowledge that an action or omission by one is considered an action or omission by the other, making each responsible for the consequences, regardless of who committed the act or omission. A breach of the Franchise Agreement by either the Finance Entity or the franchisee constitutes a breach of the entire agreement, resulting in joint and several liability for both parties.

Byrider is not obligated to pursue action against the Finance Entity and the franchisee jointly or to pursue one before the other. This gives Byrider the flexibility to seek recourse from either party based on their assessment of the situation. This arrangement ensures that Byrider has comprehensive protection and recourse in case of any failures or breaches related to the franchise agreement, placing a significant responsibility on the personal guarantors.