Where will all arbitration proceedings be conducted for disputes related to the Byrider franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
loyee, agent, consultant or in any other capacity), employs any person who is an employee of, or who, within one year of being hired by Franchisee, was previously employed by, the Company (or any of its affiliates) or any Byrider Business, without the written consent of the Company (or such affiliate) or such Byrider Business, then Franchisee must immediately pay an amount of damages equal to three (3) times the annual compensation of such individual to the Company (or its affiliate) or Byrider Business, as applicable.
ARTICLE XIX
ARBITRATION
19.1 Arbitration.
The parties agree that all controversies, disputes, or claims between Company and its affiliates, and their respective shareholders, officers, directors, agents, and/or employees, and Franchisee (and/or Franchisee's owners, guarantors, affiliates, and/or employees) arising out of or related to:
- (1) this Agreement or any other agreement between the parties;
- (2) Company's relationship with Franchisee;
- (3) the validity of this Agreement or any other agreement between the parties or any provision of any such agreements (including validity and scope of the arbitration
obligations under this Section, which the parties acknowledge are to be determined by an arbitrator, not a court); or
(4) any System requirement;
must be submitted for binding arbitration, on demand of either party, to Judicial Arbitration and Mediation Service ("JAMS") or its successor (or an organization designated by JAMS or its successor). All questions of arbitrability shall be determined by the arbitrator. The arbitration proceedings will be conducted by one arbitrator and, except as this Subsection otherwise provides, according to the then current arbitration rules of JAMS. All proceedings will be conducted at a suitable location chosen by the arbitrator in the Indianapolis, Indiana metropolitan area. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.).
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, arbitration proceedings for disputes will be conducted in the Indianapolis, Indiana metropolitan area. The specific location will be chosen by the arbitrator. This applies to any controversies, disputes, or claims between Byrider and the franchisee related to the franchise agreement, the relationship between Byrider and the franchisee, the validity of the agreement, or any system requirement.
This means that if a franchisee has a dispute with Byrider that cannot be resolved through other means, the franchisee will likely need to travel to the Indianapolis area for arbitration. This could involve significant travel expenses and time away from their business, especially if the franchisee is located far from Indiana. The arbitration will be governed by the Federal Arbitration Act, and the arbitrator's decision can be enforced in any court with jurisdiction.
However, there is an exception for franchisees in North Dakota. For them, the "Summary" section of Item 17(v), entitled "Dispute resolution by arbitration" is deleted and replaced with the following: To the extent required by the North Dakota Franchise Investment Law (unless such requirement is preempted by the Federal Arbitration Act), arbitration will be at a site to which Byrider and you mutually agree. This means that Byrider and the franchisee must agree on a location for arbitration if the North Dakota Franchise Investment Law requires it and if the Federal Arbitration Act does not preempt that requirement. This could potentially lead to a more convenient and cost-effective arbitration location for North Dakota franchisees, if they can come to a mutual agreement with Byrider.
It is important for prospective franchisees to consider the implications of the arbitration clause, including the location of the proceedings and the potential costs involved. Franchisees should also be aware of any state-specific laws that may affect the arbitration process. Consulting with an attorney experienced in franchise law is advisable to fully understand the rights and obligations under the franchise agreement.