What constitutes 'cause' for termination related to transfer violations under Article 14 of the Byrider Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Description | Franchise | C | |
| Provision | Agreement or | Summary | |
| other | |||
| agreement | |||
| h. | "Cause" defined – | Articles 16.1, | Failure to open the Business within |
| defaults which cannot | 16.2 and 16.4 | 1 year; failure to complete required | |
| be cured | initial training prior to opening for | ||
| See also Area | business; supplying Byrider | ||
| Development | Franchising Partners with materially | ||
| Agreement, | false, misleading, incomplete, or | ||
| Section 4 | inaccurate information; your | ||
| software agreement is terminated | |||
| by Byrider Franchising Partners for | |||
| breach of its provisions; you make | |||
| or attempt to make any transfer in | |||
| violation of Article 14 of the | |||
| Franchise Agreement, you make an | |||
| assignment for the benefit of | |||
| creditors or are deemed insolvent or | |||
| unable to pay your debts generally | |||
| as they become due; the business | |||
| or Business Location is seized, | |||
| taken over, or foreclosed by a | |||
| government official, creditor, | |||
| lienholder, or lessor and final | |||
| judgment is unsatisfied for thirty | |||
| days without bond or appeal or a | |||
| levy of execution has been made | |||
| upon the licenses granted or upon | |||
| any property used in the Business | |||
| and is not discharged within five | |||
| days of such levy; you or any of | |||
| your managers, directors, officers or | |||
| majority stockholder are convicted | |||
| of, or plead guilty or no contest to, a | |||
| felony or other criminal misconduct | |||
| directly related to the operation of | |||
| the Business. You default under | |||
| any other agreement with Byrider | |||
| Franchising Partners or its affiliates, | |||
| which does not afford you a cure | |||
| period. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–63)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, making or attempting to make any transfer in violation of Article 14 of the Franchise Agreement constitutes 'cause' for termination. This is considered a default that cannot be cured.
For a prospective Byrider franchisee, this means that any unauthorized attempt to transfer ownership or control of the franchise can lead to immediate termination of the franchise agreement. This is a serious matter, as it bypasses the franchisor's rights and procedures regarding franchise transfers. Franchise agreements typically have clauses outlining the process for transferring ownership, which often includes Byrider's approval, transfer fees, and training for the new owner.
This provision protects Byrider's interests by ensuring that any transfer of the franchise meets their standards and maintains the brand's integrity. It also prevents franchisees from circumventing the proper channels for transferring the business, which could potentially harm the Byrider brand. Franchisees should carefully review Article 14 of the Franchise Agreement to fully understand the transfer requirements and avoid any actions that could be considered a violation.