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What agreement does the Rider supersede if there are conflicting provisions in the Byrider FDD?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

ons 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.
  1. 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.

  1. 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.).

  1. 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.

  1. 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.

  1. 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.

  1. 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").
1.
BACKGROUND.

Source: Item 23 — Receipts (FDD pages 88–335)

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, a Rider is made between Byrider Franchising Partners, LLC and the Franchisee. This Rider is added to a Franchise Agreement or Area Development Agreement and becomes an integral part of that agreement. The Rider's purpose is to take precedence over any conflicting or inconsistent terms found within the original agreement, whether it's a Franchise Agreement or an Area Development Agreement. Terms that are not specifically defined in the Rider will retain the meanings as defined in the original agreement.

For franchisees in specific states like Minnesota, New York, Illinois, and Maryland, the Rider addresses state-specific legal requirements. For instance, the Rider might be signed because the franchisee's business will operate in a particular state, or because an offer to sell or buy the franchise was made or accepted in that state, or because the franchisee is domiciled in that state. This ensures that the franchise agreement complies with local laws and regulations.

In practical terms, this means that if a provision in the standard Franchise Agreement conflicts with a clause in the Rider, the Rider's clause will be the one that is enforced. This is particularly important for franchisees in states with specific franchise laws, as the Rider can modify the standard agreement to ensure compliance with those laws. Prospective franchisees should carefully review the Rider along with the Franchise Agreement to understand their rights and obligations, especially concerning state-specific regulations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.