What agreement does this rider amend for Byrider franchisees?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
equiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act. To the extent required by applicable law, Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act."
VIRGINIA
The following language is added to the end of the "Summary" section of Item 17(e), entitled "Termination by Byrider Franchising Partners without cause":
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN ILLINOIS
| THIS RIDER (this "Rider") is made and entered into by and between BYRIDER |
|---|
| FRANCHISING PARTNERS, LLC, a Delaware limited liability company whose address it |
| 12802 Hamilton Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and a(n) |
| whose |
| principal |
| business |
| address |
| is |
| (the |
| "Franchisee"). |
| 1. |
| BACKGROUND. The Company and Franchisee are parties to that certain |
| Franchise |
| Agreement |
| dated |
| , |
| 20 |
| (the |
| "Franchise |
| Agreement"). This Rider is annexed to and forms an integral part of the Franchise Agreement. |
| This Rider supersedes any inconsistent or conflicting provisions of the Franchise Agreement. |
| Terms not otherwise defined in this Rider have the meanings as defined in the Franchise |
| Agreement. This Rider is being signed because (a) the offer of the franchise is made or accepted |
| in the State of Illinois and Franchisee's Business is or will be located in the State of Illinois; and/or |
| (b) Franchisee is domiciled in Illinois. |
| 2. |
| ILLINOIS FRANCHISE DISCLOSURE ACT. The following is added to the |
| end of the Franchise Agreement: |
| Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the |
| laws of the State of Illinois will govern this Agreement. |
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
No statement, questionnaire or acknowledgement 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 behalf of the Company. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.
| "FRANCHISEE" | "COMPANY" | |
|---|---|---|
| «Name_of_Franchisee», «Entity_Type» | BYRIDER FRANCHISING PARTNERS, LLC | |
| «Signatory»«Signatory_Title» | By: Michael J. Onda, Chief Executive Officer |
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MARYLAND
| THIS RIDER is made and entered into by and between BYRIDER FRANCHISING |
|---|
| PARTNERS, LLC, a Delaware limited liability company whose address it 12802 Hamilton |
| Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and |
| a(n) whose principal business address is |
| (the "Franchisee"). |
| 1. |
| BACKGROUND. The Company and the Franchisee are parties to that certain |
| Franchise Agreement dated, 20 (the "Franchise Agreement"). |
| This Rider is annexed to and forms an integral part of the Franchise Agreement. This Rider |
| supersedes any inconsistent or conflicting provisions of the Franchise Agreement. |
| Terms not |
| otherwise defined in this Rider have the meanings as defined in the Franchise Agreement. This |
| Rider is being signed because (a) the Franchisee is a resident of the State of Maryland; or (b) |
| Franchisee's Business is or will be operated in the State of Maryland; or (c) the offer to sell is |
| made in the State of Maryland; or (d) the offer to buy is accepted in the State of Maryland. |
| 2. |
| MARYLAND FRANCHISE REGISTRATION AND DISCLOSURE LAW. |
| The following is added as a new Section 2.12 of the Franchise Agreement: |
| 2.12 |
| MARYLAND FRANCHISE REGISTRATION AND DISCLOSURE |
| LAW. All representations requiring the Franchisee to assent to a release, estoppel |
| or waiver of liability are not intended to nor shall they act as a release, estoppel or |
| waiver of any liability incurred under the Maryland Franchise Registration and |
| Disclosure Law. |
- RELEASES. The following is added to the end of Sections 5.2(F), 6.1(E), and 14.3(C)(6) of the Franchise Agreement:
However, any release required as a condition of renewal, sale and/or assignment/transfer will not apply to any claims or liability arising under the Maryland Franchise Registration and Disclosure Law.
- INSOLVENCY. The following sentence is added to the end of Section 16.2(A)(4) of the Franchise Agreement:
This Section 16.2(A)(4) may not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.).
- ARBITRATION. The following paragraph is added to the end of Section 19.1 of the Franchise Agreement:
A Maryland franchise regulation states that it is an unfair or deceptive practice to require the Franchisee to waive its right to file a lawsuit in Maryland claiming a
violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
- GOVERNING LAW. The following paragraph is added to the end of Section 20.5 of the Franchise Agreement:
Notwithstanding the foregoing, (1) any state law regulating the offer or sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless its jurisdictional requirements are met independently without reference to this section, and (2) Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- CHOICE OF FORUM. The following language is added to the end of Section 20.6 of the Franchise Agreement:
The Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- LIMITATION OF ACTIONS. The following sentence is added to the end of Section 20.9 of the Franchise Agreement:
Franchise must bring any claims arising under the Maryland Franchise Registration and Disclosure Law within 3 years after Company grants the Franchisee the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.
| "FRANCHISEE" | "COMPANY" | ||
|---|---|---|---|
| «Name_of_Franchisee», «Entity_Type» | BYRIDER FRANCHISING PARTNERS, LLC | ||
| «Signatory»«Signatory_Title» | By: Michael J. Onda, Chief Executive Officer |
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MINNESOTA
| THIS RIDER is made and entered into by and between BYRIDER FRANCHISING |
|---|
| PARTNERS, LLC, a Delaware limited liability company whose address it 12802 Hamilton |
| Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and |
| a(n) whose principal business address is |
| (the "Franchisee"). |
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the rider amends either the Franchise Agreement or the Area Development Agreement, depending on the specific situation. Several excerpts from Item 23 describe different scenarios where a rider is attached to and modifies one of these two agreements. Specifically, the rider is annexed to and forms an integral part of either the Franchise Agreement or the Area Development Agreement, superseding any conflicting provisions within the respective agreement.
For franchisees in certain states like New York, Illinois, Maryland, or Rhode Island, the rider modifies the Franchise Agreement to address specific state laws or regulations. For example, in New York, the rider ensures that franchisees retain rights and causes of action under New York's General Business Law. In Illinois, the rider stipulates that Illinois law governs the agreement, excluding the U.S. Federal Arbitration Act and other federal laws. In Maryland, the rider clarifies that certain representations do not act as a waiver of liability under the Maryland Franchise Registration and Disclosure Law. In Rhode Island, the rider addresses governing law.
In Minnesota, the rider is attached to the Area Development Agreement. This rider includes stipulations regarding termination notice, ensuring Byrider complies with Minnesota law concerning franchise terminations. This variation indicates that Byrider uses riders to tailor its franchise agreements and development agreements to comply with specific state regulations and legal requirements, providing additional protections or clarifications for franchisees based on their location or the nature of their agreement.