Does the Byrider company have to be in operation for a franchisee to obtain a Successor Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
emain in force and the Company's indemnification obligations under Section 11.3.B shall remain in force for a period of two (2) years after the expiration of this Agreement; and
- G. The Franchisee has settled or resolved or is vigorously defending all pending claims and demands against it by any governmental agency or authority.
- H. Notwithstanding anything to the contrary contained in Section 5.2 of this Agreement, the Company agrees that if Company is then still in the business of licensing new franchises for the operation of BYRIDER businesses, Franchisee shall have the right to obtain unlimited successive five (5) year renewal terms provided that Franchisee meets the qualifications and conditions for the successor franchise set forth in, and subject to the terms and conditions of, Sections 5.2 and 5.3 of this Agreement.
The failure by the Franchisee to sign the agreements and the release described in Subsection E and F above within thirty (30) days after delivery thereof to the Franchisee or, if sooner, by the expiration of the Term shall be deemed an election by the Franchisee not to obtain such successor franchise.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee's ability to obtain a Successor Franchise Agreement is contingent on Byrider still being in the business of licensing new franchises. Specifically, if Byrider decides to no longer offer new franchise agreements for Businesses, it may not grant a successor franchise.
However, if Byrider makes this decision and the franchisee does not operate any other Business pursuant to a franchise agreement with Byrider, Byrider will delay the implementation of certain post-termination obligations. This delay, not to exceed 120 days, allows the franchisee to transition their Business to new systems and signage at their own expense, without any charges to the transferee. During this period, certain restrictions on the franchisee's operations after the agreement ends will not apply.
This conditionality highlights a potential risk for Byrider franchisees. The renewal of their franchise agreement is not guaranteed and depends on Byrider's continued franchising activities. Prospective franchisees should consider this factor and inquire about Byrider's long-term franchising plans to assess the likelihood of obtaining a Successor Franchise Agreement in the future.