What is the choice of forum for disputes related to the Byrider Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- CHOICE OF FORUM. The following provision is added to the end of Section 20.6 ("Choice of Forum") of the Franchise Agreement:
Notwithstanding the foregoing, to the extent required by North Dakota Franchise Investment Law, and subject to the parties' arbitration obligations, the Franchisee may bring an action in North Dakota for claims arising under the North Dakota Franchise Investment Law.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the choice of forum for disputes is subject to certain state laws that may allow a franchisee to bring an action in their own state. For instance, franchisees in North Dakota, to the extent required by the North Dakota Franchise Investment Law and subject to arbitration obligations, may bring an action in North Dakota for claims arising under the North Dakota Franchise Investment Law. Similarly, Rhode Island franchisees have the right to bring an action in Rhode Island for claims arising under the Rhode Island Franchise Investment Act, as provided by Section 19-28.1-14 of the Rhode Island Franchise Investment Act, regardless of any provision in the franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island.
For Byrider franchisees, this means that while the franchise agreement may initially specify a particular forum for dispute resolution, these state-specific provisions can override that clause, allowing the franchisee to litigate certain claims within their home state. This is particularly relevant for claims arising under state franchise investment laws. The FDD also states that the choice of law should not be considered a waiver of any right conferred upon Byrider Franchising Partners or the franchisee by Article 33 of the General Business Law of the State of New York.
These state law stipulations are designed to protect franchisees and ensure they have access to local legal remedies. However, these rights are not absolute and are subject to certain conditions and limitations, such as the requirement to participate in arbitration where applicable. Prospective Byrider franchisees should carefully review these state-specific riders and consult with legal counsel to fully understand their rights and obligations regarding dispute resolution.