What condition must be met for a transfer of a deceased owner's interest to an existing owner to be exempt from being considered a 'Transfer' under the Byrider franchise agreement?

According to Byrider's 2025 Franchise Disclosure Document, a transfer of a deceased owner's interest in the Byrider franchise to an existing owner is not considered a 'Transfer' if a new majority owner, if any, signs all documents a majority owner is required to sign under the franchise agreement. This provision applies to transfers of ownership within the existing franchise structure rather than sales to outside parties.

This condition ensures that even after the transfer of a deceased owner's interest, someone is still accountable for the franchise's obligations. By requiring a new majority owner to sign the necessary documents, Byrider maintains a level of control and ensures that the franchise continues to be managed responsibly. This requirement protects Byrider's interests and standards, as well as the interests of other franchisees within the Byrider system.

For a prospective franchisee, this means that if they plan to operate the franchise with partners or co-owners, they should have a clear succession plan in place. This plan should address who will assume control and sign the necessary documents in the event of a co-owner's death or incapacity. Having such a plan can help avoid complications and ensure a smooth transition, allowing the franchise to continue operating without disruption. It is also important to note that this condition only applies if there is a new majority owner; otherwise, the transfer may still be subject to Byrider's standard transfer approval process.

It is important for prospective franchisees to fully understand Byrider's transfer policies, including the conditions under which a transfer fee may be required or waived. Consulting with a legal and financial advisor can help potential franchisees navigate these complex provisions and make informed decisions about their investment.