What are the conditions under which a Byrider franchisee can renew their Franchise Agreement (as implied by obligations in Item 9) and how does this relate to the ongoing fees (Item 6)?

According to Byrider's 2025 Franchise Disclosure Document, a franchisee has the right to obtain three additional, successive franchise terms of five years each, provided Byrider Franchising Partners is still in the business of licensing new franchises. If Byrider is still licensing franchises, the franchisee has the right to obtain unlimited successive franchises of five-years each, as long as they continue to meet the qualifications and conditions for each renewal term. These requirements include requesting a successive franchise term, compliance with the Franchise Agreement, fulfilling financial obligations to Byrider Franchising Partners, and executing the necessary documents. Renewal involves signing Byrider's then-current franchise agreement for a five-year successor franchise term, which may contain materially different terms, including fees.

Item 6 outlines various fees payable to Byrider Franchising Partners, which are generally uniform to all franchisees. These fees are non-refundable unless otherwise stated. Byrider may offer optional services for which they may charge a fee and reserves the right to charge a technology fee or an accounting fee for analyzing accounting information, providing financial reports, or related services. Franchisees may also be required to pay for modifications to the System mandated by Byrider. Ultra Franchisees who joined the System after January 1, 2021, pay the Ultra2 Royalty Fee, which includes a minimum monthly payment that increases by 4.0% every other year. Traditional Franchisees who joined the System before January 1, 2021, pay the Traditional Royalty Fee.

The renewal conditions are directly linked to the ongoing fees as the franchisee must remain compliant with the Franchise Agreement and fulfill their financial obligations to Byrider Franchising Partners to qualify for renewal. The renewal agreement may also contain different fee structures, potentially impacting the franchisee's financial obligations. Prospective franchisees should carefully consider these potential changes in fees when evaluating the long-term financial implications of a Byrider franchise and the conditions required to maintain eligibility for renewal.