What are the conditions that a Byrider franchisee must meet to be eligible for a Successor Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- A.
The Franchisee shall have the right to occupy the Business Location or such other location approved by the Company in writing, for a period ending not sooner than the expiration of the term of the Successor Franchise Agreement;
- B.
The Franchisee has complied with all the material terms and conditions of this Agreement and has complied with the Company's material operating and quality standards and procedures.
In the event the Franchisee is not in compliance, the Company agrees to provide written notice to the Franchisee and the Franchisee will be able to cure within 5 business days of receipt of notice of its non-compliance.
In the event Franchisee cures its non-compliance within such period, Franchisee will be deemed to have met its obligation under 5.2B;
- C.
All monetary obligations owed by the Franchisee to the Company have been satisfied prior to such Successor Franchise Agreement and have been met, when due, throughout the Term or Franchisee has cured any noncompliance within 5 business days of delivery of written notice.
In the event the Franchisee is not in compliance, the Company agrees to provide written notice to the Franchisee and the Franchisee will be able to cure within 5 business days of receipt of notice of its non-compliance.
In the event of Franchisee cures its non-compliance within such period, Franchisee will be deemed to have met its obligation under 5.2C;
- D.
The Franchisee has made, at its expense, such expenditures necessary to upgrade, remodel and redecorate the Business Location and the fixtures, equipment and supplies used in the Franchisee's Business to conform to the requirements of the System and the image of the Business at the commencement of the Successor Franchise Agreement (the "Necessary Modifications"); provided that the Company will not require any modifications to the exterior signage if the Company required an exterior signage modification within the five (5) years immediately preceding the expiration of this agreement.
The Company shall notify the Franchisee of the Necessary Modifications within ninety (90) days after receipt of the Successor Franchise Notice;
- E.
The Franchisee executes the then current franchise agreement and other forms the Company is then requiring of new franchisees, which may contain rights and obligations which are materially different than those contained in this Agreement, except that the Franchisee will not be required to pay an Initial Franchise Fee;
- F. The Franchisee executes and delivers to the Company a written general release (except as may be limited by law) of all claims and demands against the Company, its officers, directors, representatives and affiliates provided, however, that all rights enjoyed by the Franchisee mandated by applicable state law shall remain in force and the Company's indemnification obligations under Section 11.3.B shall remain in force for a period of two (2) years after the expiration of this Agreement; and
- G. The Franchisee has settled or resolved or is vigorously defending all pending claims and demands against it by any governmental agency or authority.
- H. Notwithstanding anything to the contrary contained in Section 5.2 of this Agreement, the Company agrees that if Company is then still in the business of licensing new franchises for the operation of BYRIDER businesses, Franchisee shall have the right to obtain unlimited successive five (5) year renewal terms provided that Franchisee meets the qualifications and conditions for the successor franchise set forth in, and subject to the terms and conditions of, Sections 5.2 and 5.3 of this Agreement.
The failure by the Franchisee to sign the agreements and the release described in Subsection E and F above within thirty (30) days after delivery thereof to the Franchisee or, if sooner, by the expiration of the Term shall be deemed an election by the Franchisee not to obtain such successor franchise.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee has the right to obtain three additional successor franchise agreements, each for a five-year term, provided they meet certain qualifications and conditions.
To be eligible for a Successor Franchise Agreement, a Byrider franchisee must meet several conditions. First, they must have the right to occupy the Business Location or another location approved by Byrider in writing, ensuring the occupancy extends no sooner than the expiration of the Successor Franchise Agreement. Second, the franchisee must have complied with all material terms and conditions of the existing agreement, including adherence to Byrider's operating and quality standards and procedures. If the franchisee is not in compliance, Byrider will provide written notice, allowing the franchisee five business days to cure the non-compliance.
Additionally, all monetary obligations owed by the franchisee to Byrider must be satisfied before the Successor Franchise Agreement, and these obligations must have been met when due throughout the term. Similar to operational compliance, Byrider will provide written notice and a five-business-day cure period for any monetary non-compliance. The franchisee is also responsible for making necessary expenditures to upgrade, remodel, and redecorate the Business Location to conform to the System's requirements and the image of the Business at the commencement of the Successor Franchise Agreement. Byrider will notify the franchisee of these necessary modifications within ninety days after receiving the Successor Franchise Notice.
Finally, the franchisee must execute the then-current franchise agreement and other required forms, which may contain materially different rights and obligations, although the franchisee will not be required to pay an initial franchise fee. The franchisee must also deliver a written general release of all claims against Byrider and related parties, and they must have settled, resolved, or be vigorously defending against all pending claims and demands by any governmental agency or authority. Failure to sign the agreements and release within thirty days after delivery will be deemed an election not to obtain a successor franchise.