After Byrider assigns the Franchise Agreement to a third party who assumes all obligations, what obligations does Byrider retain under the agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1 Assignment by the Company. The Franchisee acknowledges that the Company maintains a staff to manage and operate the System and that staff members can change as employees come and go. The Franchisee further acknowledges that it did not sign this Agreement in reliance on the continued participation by or employment of any of the Company's shareholders, directors, officers, or employees. The Company shall have the right to change its ownership or form and/or assign or transfer this Agreement, all of its rights, obligations and privileges under this Agreement, and any other agreement to a third party without restriction. After the Company's assignment of this Agreement to a third party who expressly assumes all of the obligations of the Company under this Agreement, the Company will no longer have any performance or other obligations under this Agreement. This Agreement and any other agreement will inure to the benefit of any transferee or other legal successor to the Company's interest in it.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider has the right to assign or transfer the Franchise Agreement to a third party without any restrictions. This includes all of its rights, obligations, and privileges outlined in the agreement, as well as any other related agreements.
Once Byrider assigns the Franchise Agreement to a third party, and that third party expressly assumes all of Byrider's obligations under the agreement, Byrider will no longer have any performance or other obligations under the Franchise Agreement. The agreement and any other related agreements will then benefit the transferee or any other legal successor to Byrider's interest in it.
This clause means that a prospective Byrider franchisee should be aware that the company can transfer its obligations to another entity, relieving Byrider of its responsibilities. It is important for the franchisee to assess the capabilities and reputation of any potential future assignee, as their experience with the franchise will then depend on this new entity. Franchisees should seek legal counsel to fully understand the implications of such an assignment and how it might affect their investment and the operation of their Byrider franchise.