Does the Byrider agreement disclaim representations made in the franchise disclosure document?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| This VETERAN DISCOUNT ADDENDUM (this "Addendum") dated as of | ||
|---|---|---|
| (the "Effective Date") amends and supplements certain terms and conditions of | ||
| the Franchise Agreement dated | (the "Franchise Agreement") entered into | |
| between BYRIDER FRANCHISING PARTNERS, LLC (the "Company") and | (the "Franchisee"). In the event of any conflict between the terms of the | |
| Agreement and the terms of this Addendum, the terms of this Addendum shall control. | All | |
| capitalized terms not otherwise defined in this Addendum shall have their respective meanings set | ||
| forth in the Agreement. | ||
| WHEREAS, Franchisee (or if a legal entity, Franchisee's owner(s)) [is/are] a veteran of | ||
| the United States Armed Forces; and | WHEREAS, the Company has agreed to charge Franchisee a reduced initial franchise fee | |
| on the terms and conditions set forth herein. | ||
| NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of | ||
| which is hereby acknowledged, the Company and Franchisee hereby agree as follows: | ||
| 1. | Initial Franchise Fee. The Company and Franchisee agree and acknowledge that | |
| the Initial Franchise Fee provided in Section 3.8 of the Franchise Agreement shall be $50,000. | ||
| 2. | Other Terms. All other terms of the Franchise Agreement shall remain in full force | |
| and effect. | ||
| IN WITNESS WHEREOF, the parties have executed and delivered this Addendum on | ||
| the dates noted below, to be effective as of the Effective Date of this Addendum. | ||
| BYRIDER FRANCHISING PARTNERS, LLC | [FRANCHISEE] | |
| By | By | |
| Michael J. Onda, CEO | [Name], [Title] | |
| Date: | Date: | |
EXHIBIT L
TO
FRANCHISE DISCLOSURE DOCUMENT
ADDITIONAL DISCLOSURE FOR THE FRANCHISE DISCLOSURE DOCUMENT OF BYRIDER FRANCHISING PARTNERS, LLC
The following are additional disclosures for the Franchise Disclosure Document of Byrider Franchising Partners, LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
FOR THE FOLLOWING STATES: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
CALIFORNIA
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT.
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Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the franchise agreement includes acknowledgements by the franchisee regarding their independent investigation and understanding of the business opportunity. Specifically, the franchisee acknowledges they are not relying on any representations regarding profits of the franchise, the company, or the system, except for information provided in Item 19 of the Franchise Disclosure Document. This means Byrider attempts to limit its liability for any claims based on financial projections or promises made outside of the formal FDD.
However, the FDD also includes additional disclosures for franchisees in certain states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. For franchisees in those states, no statement signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Byrider or its representatives. This provision supersedes any other term in any document executed in connection with the franchise.
In essence, Byrider's franchise agreement contains standard clauses where the franchisee acknowledges conducting their own due diligence and not relying on specific representations. However, these clauses are explicitly overridden by state-specific provisions in certain states, which protect the franchisee's right to pursue claims based on misrepresentations or fraud, even if they signed an agreement acknowledging otherwise. This creates a complex legal landscape where the enforceability of disclaimers depends heavily on the franchisee's location.