Does Byrider consider the covenants not to compete in the agreement fair and reasonable?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.4 Enforcement of Covenants Not To Compete. The Franchisee acknowledges that violation of the covenants not to compete contained in this Agreement would result in immediate and irreparable injury to the Company for which no adequate remedy at law will be available. Accordingly, the Franchisee hereby acknowledges the Company's right to seek an injunction and agrees not to contest any application by the Company for such injunction to prohibit any conduct by the Franchisee in violation of the terms of those covenants not to compete set forth in this Agreement. The Franchisee expressly agrees that it may be conclusively presumed that a violation of the terms of said covenants not to compete was accomplished by and through the Franchisee's unlawful utilization of the Company's Confidential Information, know-how, methods and procedures. Further, the Franchisee expressly agrees that the existence of any claims it may have against the Company, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by the Company for the covenants not to compete set forth in this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider considers the covenants not to compete to be fair and reasonable, emphasizing their importance for protecting the company's interests. Specifically, Byrider asserts that violating these covenants would cause immediate and irreparable harm for which monetary compensation would be inadequate.
To protect their interests, Byrider includes a clause in the franchise agreement that allows them to seek a court order (injunction) against a franchisee to immediately stop any behavior that violates the non-compete terms. The franchisee agrees not to challenge Byrider's request for such an injunction. The agreement also states that if a franchisee violates the non-compete terms, it will be assumed they are using Byrider's confidential information improperly.
Furthermore, any claims the franchisee may have against Byrider will not be a valid defense against Byrider enforcing the non-compete agreements. This indicates Byrider's strong stance on enforcing these covenants, viewing them as crucial for safeguarding their business model and proprietary information.