Who is the Byrider agreement binding upon, besides the immediate parties?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
on, any provision of this Agreement or any specification, standard or operating procedure prescribed by the Company is invalid or unenforceable, the prior notice or other action required by such law or rule shall be substituted for the notice requirements hereof, or such invalid or unenforceable provision, specification, standard or operating procedure shall be modified to the extent required to be valid and enforceable. Such modifications to this Agreement shall be effective only in such jurisdictions and shall be enforced as originally made and entered into in all other jurisdictions.
- 20.2 No Third Party Rights. Anything to the contrary herein notwithstanding, nothing in this Agreement is intended, nor shall it be deemed to confer upon any person or legal entity other than the Company or the Franchisee and such of their respective successors and assigns as may be contemplated by this Agreement, any rights or remedies under or by reason of this Agreement, except as provided in Section 18.5 and Section 19.1.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the franchise agreement is generally intended to bind only Byrider and the franchisee. However, there are specific exceptions where the agreement may extend rights or obligations to other parties.
Specifically, the document states that the arbitration subsection includes provisions intended to benefit and bind certain third-party non-signatories, and these provisions remain effective even after the agreement expires or terminates. Additionally, the agreement extends to the "successors and assigns" of both Byrider and the franchisee, under certain conditions. This means that if either party transfers their rights or obligations to another entity, that entity may also be bound by the agreement.
However, Section 18.5 and Section 19.1 are exceptions to the rule that the agreement does not confer rights or remedies to other parties. These sections are not defined in the provided excerpts. A prospective franchisee should carefully review these sections within the full FDD to understand the specific rights and obligations of third parties.
In summary, while the Byrider franchise agreement primarily governs the relationship between Byrider and the franchisee, certain provisions, particularly those related to arbitration and the transfer of rights, can affect or bind other parties as well.