What condition must be met for the one-year post-term non-compete period to begin for a Byrider franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2 After Termination. With the exception of activities usual and customary to the winding-up or transfer of a business (e.g. collection of receivables, transitional assistance to a transferee, etc.) not to exceed 90 days, which activities Company hereby affirms that Franchisee shall have the right in which to engage, Franchisee agrees that for a period of one (1) year immediately following the expiration or termination of this Agreement or any Successor Franchise Agreement, neither it nor any of its owners (or their immediate family members) will (i) engage, participate or assist in any way in the operation of or (ii) have any direct or indirect interest (whether as an owner, investor, partner, director, officer, employee, consultant, representative, agent, landlord, or otherwise) in, any Competitive Business that is located within a twenty-five (25) mile radius of Franchisee's Business or within a ten (10) mile radius of any Business in operation or under construction as of the date of expiration or termination of this Agreement. The one (1) year post-Term noncompete period in this Article 18.2 shall begin on the date Franchisee complies with Article 18.2.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the one-year post-term noncompete period outlined in Article 18.2 begins on the date the franchisee complies with Article 18.2. This means that the franchisee must fulfill the obligations and conditions specified within that section of the franchise agreement to trigger the start of the non-compete period.
Article 18.2 specifies that after the termination or expiration of the Franchise Agreement, the franchisee and their owners (or their immediate family members) are restricted from engaging in or having any interest in a Competitive Business. This restriction applies for one year and within a specific geographic area: a 25-mile radius of the franchisee's former Byrider Business or a 10-mile radius of any other Byrider Business in operation or under construction as of the termination date.
Therefore, for a Byrider franchisee, the commencement of the one-year non-compete period is directly linked to their adherence to the terms laid out in Article 18.2, which primarily concerns refraining from involvement in competitive businesses within the defined geographic boundaries after the franchise agreement ends. It is important for prospective franchisees to carefully review and understand the full scope of Article 18.2 to ensure they are aware of their obligations and how they impact their future business activities after leaving the Byrider system.