What is the condition for the Licensee to receive a non-transferable license to access and use the Byrider Licensed System?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
icensee data processing and other services related to the "buy-here-pay-here" automobile sales and collection management systems, particularly generation of specific retail installment sales and security contracts from input data and monitoring of receivables and collection productivity by Licensee (hereinafter referred to as "Services"). Licensor shall have the right to suspend or limit, in whole or in part, Licensee's access to the Services upon ten (10) days written notice to Licensee if any amounts due Licensor are more than thirty (30) days past due or as otherwise provided in the Franchise Agreement.
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- License. Subject to all the terms and conditions of this Agreement and the Franchise Agreement, Licensor hereby grants to Licensee, and Licensee hereby accepts, a nonexclusive, indivisible, non-transferable license to access and use the Licensed System in a manner consistent with the terms of this Agreement. Such license is provided for the sole purpose of allowing Licensee access to the functions of the Licensed System necessary to obtain the Services for the sole use of Licensee's automobile sales business pursuant to and in accordance with the Franchise Agreement. It is the responsibility of the Licensee alone to ensure that the Licensed System fulfills the individual requirements and goals of the Licensee. This license extends only to use for Licensee's own internal automobile sales business purposes and not for any direct or indirect benefit of third parties. Licensee agrees to access the Licensed System only by means of the equipment and procedures substantially similar to those designated in Appendix A attached hereto and incorporated herein by reference. Licensee agrees to use the Licensed System solely for the purposes of business initiated and conducted at the location specified in Appendix C, and additional locations may not be added without Licensor's approval. Licensee shall not use or access the Licensed System in connection with the performance of data processing services or as a service bureau for any third person.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the licensee's ability to access and use the Byrider Licensed System is contingent upon adhering to the terms and conditions outlined in both the Software Services and User Agreement and the Franchise Agreement. Byrider grants the licensee a nonexclusive, indivisible, and non-transferable license to access and use the Licensed System, but this is specifically for obtaining services related to the licensee's automobile sales business, as defined and governed by the Franchise Agreement.
This license is explicitly for the licensee's internal business operations and does not extend to providing any direct or indirect benefits to third parties. The licensee must use equipment and procedures similar to those detailed in Appendix A of the agreement. Furthermore, the licensee is restricted to using the Licensed System for business conducted at the location specified in Appendix C, with any additional locations requiring prior approval from Byrider. The licensee is prohibited from using the system for data processing services or as a service bureau for third parties.
Continuous and complete compliance with the non-disclosure provisions outlined in Section 11 of the agreement is a condition for maintaining the license. This includes preventing unauthorized use or disclosure of confidential information. Byrider retains the right to modify the components of the Licensed System at its discretion. If the licensee fails to comply with these conditions, their access to the Licensed System could be terminated.