factual

Does the Byrider area development agreement contain provisions related to renewal, termination, transfer, and dispute resolution?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]

ITEM 17

RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION

THE FRANCHISE RELATIONSHIP

This table lists certain important provisions of the franchise agreement, area development agreement and related agreements pertaining to renewal, termination, transfer, and dispute resolution. You should read these provisions in the agreements attached to this disclosure document.

Section in
Franchise
Provision Agreement or Summary
1 10 13 10 11 other Summary
agreement
b. Renewal or extension Articles 5.2 and You have the right to obtain three
D. of the Term 5.3 additional, successive franchise
or the renn 0.0 terms of five years each. However,
if Byrider Franchising Partners is
then still in the business of licensing
new franchises, you will have the
right to obtain unlimited successive
franchises of five-years each, so
long as you continue to meet the
qualifications and conditions for
each renewal term.
h. "Cause" defined – Articles 16.1, Failure to open the Business within
defaults which cannot 16.2 and 16.4 1 year; failure to complete required
be cured initial training prior to opening for
See also Area business; supplying Byrider
Development Franchising Partners with materially
Agreement, false, misleading, incomplete, or
Section 4 inaccurate information; your
software agreement is terminated
by Byrider Franchising Partners for
breach of its provisions; you make
or attempt to make any transfer in
violation of Article 14 of the
Franchise Agreement, you make an
assignment for the benefit of
creditors or are deemed insolvent or
unable to pay your debts generally
as they become due; the business
or Business Location is seized,
taken over, or foreclosed by a
government official, creditor,
lienholder, or lessor and final
judgment is unsatisfied for thirty
days without bond or appeal or a
levy of execution has been made
upon the licenses granted or upon
any property used in the Business
and is not discharged within five
days of such levy; you or any of
your managers, directors, officers or
majority stockholder are convicted
of, or plead guilty or no contest to, a
felony or other criminal misconduct
directly related to the operation of
the Business. You default under
any other agreement with Byrider
Franchising Partners or its affiliates,
which does not afford you a cure
period.
n. Byrider Franchising Partners' right of first refusal to acquire your business Article 15 Within 30 days of a notice of assignment from you, Byrider Franchising Partners has the right to match the offer given you by a third party and cause the transfer or assignment to be made to Byrider Franchising Partners.
u. Dispute resolution by arbitration arbitration Article 19.1 You and Byrider Franchising Partners will engage in arbitration conducted in Indianapolis, Indiana.
V. Choice of forum Article 20.6 Litigation must be in Marion County, Indiana (Subject to State Law)
W. Choice of law Article 20.5 Indiana law applies (Subject to State Law)

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–63)

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, Item 17 provides details pertaining to renewal, termination, transfer, and dispute resolution related to the franchise agreement, area development agreement, and other related agreements. The FDD indicates that franchisees have the right to obtain three additional, successive franchise terms of five years each, provided they meet the qualifications and conditions for each renewal term.

The FDD also outlines various conditions under which Byrider may terminate the franchise agreement for cause, including failure to open the business within one year, failure to complete required initial training, providing false information, or defaulting under other agreements with Byrider.

Regarding dispute resolution, the FDD states that disputes will be resolved through arbitration in Indianapolis, Indiana, and litigation must occur in Marion County, Indiana, subject to state law. Indiana law governs the franchise agreement, also subject to state law. Byrider also has a right of first refusal to acquire the franchisee's business within 30 days of a notice of assignment from the franchisee.

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.
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