What is the condition for Byrider's approval of the lease for a Business Location?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's approval of the lease will be conditioned upon, among other things, execution by Franchisee and the landlord the form of lease addendum attached as Exhibit F hereto.
If the landlord is an affiliate of Franchisee, Franchisee must cause the landlord to execute the affiliated entity joinder attached as Exhibit G hereto.
The Company's review of and consent to the lease are limited to those provisions and items that the Company believes are necessary and appropriate solely for its own purposes and its own benefit as the licensor of the Marks and the System.
The Franchisee has been advised to obtain the advice of its own professional advisors before the Franchisee signs or makes any adjustments to the lease to accommodate its operation of the Franchisee's Business.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider's approval of a lease for a Business Location is conditioned on the franchisee and the landlord executing the form of lease addendum attached as Exhibit F to the FDD. If the landlord is affiliated with the franchisee, the franchisee must ensure the landlord executes the affiliated entity joinder attached as Exhibit G to the FDD.
Byrider's review and consent to the lease are limited to provisions and items Byrider believes are necessary and appropriate solely for its own purposes and benefit as the licensor of the Marks and the System. The FDD advises franchisees to seek advice from their own professional advisors before signing or adjusting the lease to accommodate their Byrider business operations.
These conditions ensure Byrider maintains control over the location and protects its interests. The lease addendum and affiliated entity joinder likely contain clauses that allow Byrider to step in or take over the location under certain circumstances, such as the franchisee's default or termination of the franchise agreement. This is a common practice in franchising to protect the brand and ensure business continuity.
Prospective franchisees should carefully review Exhibits F and G and consult with legal and real estate professionals to fully understand their obligations and the potential implications of these lease conditions. They should also negotiate favorable lease terms with the landlord, keeping in mind Byrider's approval requirements.