What conditions must be satisfied for Byrider Franchising Partners to approve a transfer by a franchisee, as detailed in Articles 14.2-14.3?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or other agreement | Summary | |
|---|---|---|---|
| i. | Your obligations on termination/nonrenewal | Article 17.1 | Obligations include payment of outstanding amounts, sale to Byrider Franchising Partners of all assets it selected for your Business at the lower of your cost or fair market value, complete deidentification with Byrider Franchising Partners and return of confidential information (also see below). |
| j. | Assignment of contract by Byrider Franchising Partners | Article 14.1 | No restrictions on Byrider Franchising Partners' right to assign. However, no assignment will be made except to an assignee who, in the good faith and judgment of the franchisor, is willing and able to assume the franchisor's obligations. |
| k. | "Transfer" by you – definition | Articles 14.2 – 14.3 | Includes transfers of rights and interests under the Franchise Agreement and transfers of ownership interest and Business assets. |
| I. | Byrider Franchising Partners' approval of transfer by you | Articles 14.2- 14.3 | Byrider Franchising Partners must give written consent for all transfers but will not unreasonably withhold consent as long as various conditions are being satisfied. |
| m. | Conditions for Byrider Franchising Partners' approval of transfer | Articles 14.2-14.3 | The new franchisee to whom you transfer must have the skills and resources to fulfill your contract obligations, must undertake all obligations including training and signing a Franchise Agreement; you must release all claims against Byrider Franchising Partners, pay a transfer fee (see Item 6) and comply with the Franchise Agreement including the provisions for Byrider Franchising Partners' right of first refusal (see s and t below). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–63)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners' approval of a transfer by a franchisee, as detailed in Articles 14.2-14.3, is contingent upon several conditions being met. Byrider must provide written consent for all transfers, but Byrider will not unreasonably withhold consent as long as various conditions are satisfied.
These conditions include ensuring that the new franchisee possesses the necessary skills and resources to fulfill the existing contract obligations. Additionally, the new franchisee must agree to undertake all obligations, including completing the required training and signing Byrider's current Franchise Agreement.
Furthermore, the transferring franchisee must release all claims against Byrider Franchising Partners and comply with all provisions of the Franchise Agreement, including those pertaining to Byrider's right of first refusal. The transferring franchisee must also pay a transfer fee, as outlined in Item 6 of the FDD. Meeting all of these stipulations is necessary for a franchisee to successfully transfer their Byrider franchise to a new owner.