What is the consequence if a Byrider franchisee fails to comply with any federal, state, or local law?

According to the 2025 Byrider Franchise Disclosure Document, a franchisee's failure to comply with any federal, state, or local law, ordinance, or regulation constitutes grounds for termination of the Franchise Agreement. However, Byrider must provide the franchisee with written notice of the failure and an opportunity to correct the issue within thirty (30) days. If the franchisee does not cure the failure within this timeframe, Byrider has the right to terminate the agreement immediately.

This provision underscores the importance of franchisees maintaining full legal compliance in all aspects of their Byrider business. This includes, but is not limited to, used-vehicle sales laws, Truth-in-Lending laws, Equal Credit Opportunity laws, and employment laws. Franchisees must also ensure full legal compliance of all customer vehicle sale and finance transaction documents.

For a prospective Byrider franchisee, this means that understanding and adhering to all applicable laws is crucial to maintaining a good standing with the franchisor and avoiding potential termination of the franchise agreement. It is advisable to consult with legal counsel to ensure full compliance and to stay updated on any changes in regulations that may affect the operation of the Byrider business.