What are the conditions under which Byrider Franchising Partners can terminate the Franchise Agreement (as implied by obligations in Item 9) and how does this relate to the use of trademarks (Item 13)?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise | |||
| Provision | Agreement or | Summary | |
| 1 10 13 10 11 | other | Summary | |
| agreement | |||
| d. | Termination by you | Article 16.3 | You may terminate if you are in |
| compliance with the Franchise | |||
| Agreement, and you notify Byrider Franchising Partners of its material | |||
| breach, but Byrider Franchising | |||
| Partners does not cure the breach. | |||
| The franchisee may terminate the | |||
| agreement on any grounds | |||
| available by law. | |||
| e. | Termination by Byrider | N/A | Not applicable. |
| Franchising Partners | |||
| without cause |
You must follow Byrider Franchising Partners' rules when you use its Marks. You cannot use any Mark as part of your corporate or legal business name or with modifying words, designs or symbols (except for those Byrider Franchising Partners licenses to you). You will not be permitted to use any Mark in performing any unauthorized services, in selling any unauthorized products or in any other manner Byrider Franchising Partners has not expressly authorized in writing.
You must notify Byrider Franchising Partners immediately of any apparent infringement or challenge to your use of any Mark, or of any claim by any person of any rights in any Mark, and you may not communicate with any person other than Byrider Franchising Partners, Byrider Franchising Partners' attorneys and your attorneys of this infringement, challenge or claim. Byrider Franchising Partners has sole discretion to take the action it deems appropriate and the right to control exclusively any litigation, Patent and Trademark Office proceeding or any other administrative proceeding from this infringement, challenge or claim concerning any Mark. You must sign any instruments and documents, provide any assistance and take any action that, in the opinion of Byrider Franchising Partners attorneys, may be necessary or advisable to protect and maintain Byrider Franchising Partners interests in any litigation or Patent and Trademark Office or other proceeding or otherwise to protect and maintain Byrider Franchising Partners interests in the Marks.
If, in the circumstance of a trademark infringement challenge, Byrider Franchising Partners in its sole discretion directs you to modify or discontinue the use of any Mark or use one or more additional or substitute trade or service marks, you must comply with Byrider Franchising Partners' directions within a reasonable time after receiving notice. Byrider Franchising Partners will reimburse you for your reasonable direct expenses of changing printed advertising and marketing materials for which you have paid. However, Byrider Franchising Partners will not be obligated to reimburse you for any loss of revenue attributable to any modified or discontinued Mark or for any expenditures you make to promote a modified or substitute trademark or service mark.
Byrider Franchising Partners will indemnify you against and reimburse you for all damages for which you are held liable in any proceeding from your authorized use of any Mark, and for all costs you reasonably incur in defending any claim brought against you or any proceeding in which you are named as a party, if you have timely notified Byrider Franchising Partners of the claim or proceeding and otherwise have complied with the Franchise Agreement. Byrider Franchising Partners is entitled, at its option, to defend and control the defense of any proceeding resulting from your use of any Mark.
What This Means (2025 FDD)
Based on the 2025 FDD, the excerpt does not explicitly detail the conditions under which Byrider Franchising Partners can terminate the Franchise Agreement without cause. However, it does outline a franchisee's right to terminate the agreement if they are in compliance and Byrider breaches the agreement but fails to cure the breach. The franchisee can also terminate the agreement on any grounds available by law.
Regarding trademarks, Byrider franchisees must adhere to specific rules when using Byrider's marks. They cannot use any mark as part of their corporate or legal business name or with unauthorized modifications. Franchisees are not allowed to use the marks for unauthorized services or products unless expressly authorized in writing by Byrider Franchising Partners. All websites relating to the Byrider franchise must be approved by Byrider Franchising Partners and include a banner link to Byrider's corporate homepage.
Franchisees must immediately notify Byrider of any trademark infringement or challenges and must comply with Byrider's directions to modify or discontinue the use of any mark in such circumstances. Byrider will cover reasonable direct expenses for changing printed advertising materials but not for lost revenue or promotion of substitute marks. Byrider also indemnifies franchisees against damages from authorized use of the marks, provided the franchisee has complied with the Franchise Agreement and notified Byrider of any claims or proceedings.
Because the excerpt does not fully specify the conditions under which Byrider can terminate the agreement without cause, it is important for a prospective franchisee to ask Byrider Franchising Partners for a comprehensive list of conditions that could lead to termination by Byrider. Understanding these conditions is crucial for assessing the risks and obligations associated with the franchise agreement.