What constitutes a breach related to confidential information that could lead to termination of the Byrider franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
In so doing, Franchisee shall require and represents that each of its employees, agents and representatives complies with each and every provision of this
Agreement. Upon termination of this Agreement without the necessity of any request from the Company, or at any other time the Company may in writing so request, Franchisee shall promptly deliver to the Company all materials concerning any Confidential Information, copies thereof and any other materials of the Company and/or its affiliates which are in Franchisee's possession or under Franchisee's control, and Franchisee shall not make or retain any copy, draft or extract thereof which has been made at any time. Franchisee acknowledges that the foregoing provisions are necessary to protect the special knowledge of the Company's and its affiliates' trade secrets (which are the result of a considerable amount of time, money and effort of the Company and its affiliates to increase and maintain its sales, including product sales) which Franchisee has acquired and will acquire in carrying out Franchisee's job responsibilities as well as the Company's goodwill and customer relationships to which Franchisee has gained access through Franchisee's dealer relationship. Nothing contained herein shall be construed or considered to vest in the Franchisee any right, title or interest of any kind in or to the information disclosed or made available to it by the Company pursuant to this Agreement or otherwise. Accordingly, Franchisee acknowledges and agrees that all memoranda, notes, records, agreements, documents and other materials, as well as copies and drafts thereof, made and/or compiled by Franchisee and/or made available to Franchisee during the course of his/her dealer relationship, which relate to the Confidential Information (as stated above), is and shall remain the property of the Company. The obligations of Franchisee under this Section shall survive the termination (for any reason) or breach of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, several obligations pertain to the handling of confidential information, and failure to comply can lead to termination of the franchise agreement. Upon termination or expiration of the agreement, Byrider franchisees must maintain the confidentiality of all proprietary and confidential information furnished by Byrider. They must also promptly return the manual and other confidential materials, including all Byrider computer software.
Specifically, franchisees must ensure that all employees and representatives comply with every provision of the franchise agreement, especially regarding confidential information. Franchisees must promptly deliver all materials concerning any confidential information to Byrider upon termination of the agreement or at any other time Byrider requests it in writing. This includes copies and any other materials of Byrider and its affiliates in the franchisee's possession or control. Franchisees are prohibited from making or retaining any copies, drafts, or extracts of confidential information.
These provisions are in place to protect Byrider's trade secrets, goodwill, and customer relationships, which the franchisee gains access to through the dealer relationship. All memoranda, notes, records, agreements, documents, and other materials related to confidential information remain the property of Byrider. The franchisee's obligations regarding confidential information survive the termination or breach of the agreement, highlighting the importance Byrider places on protecting its proprietary information.