What is the Company's obligation regarding transfer approval if the Byrider franchisee is in full compliance with the agreement?

According to Byrider's 2025 Franchise Disclosure Document, if a franchisee and its owners are in full compliance with the franchise agreement, Byrider will approve a transfer that meets all the requirements outlined in Section 14.3.C of the agreement. This obligation is subject to the provisions of Section 14, indicating that there are specific conditions and procedures that must be followed for the transfer to be approved.

This means that simply being in compliance does not guarantee automatic approval. The proposed transfer must still adhere to all other stipulations detailed in Section 14.3.C. These stipulations likely cover aspects such as the transferee's qualifications, financial capabilities, and absence of conflicts of interest, ensuring that the new franchisee can successfully operate the Byrider business and uphold the brand's standards.

For a prospective Byrider franchisee, this highlights the importance of understanding all the requirements for transfer, not just maintaining compliance. It also emphasizes the need to carefully vet potential transferees to ensure they meet Byrider's criteria, as a failure to meet these requirements can result in the transfer being denied, even if the franchisee is in good standing. A prospective franchisee should request a detailed explanation of all requirements in Section 14.3.C from Byrider.