What constitutes a 'Control Assignment' in the context of a Byrider franchise agreement?

According to Byrider's 2025 Franchise Disclosure Document, a 'Control Assignment' refers to specific scenarios involving the transfer of the franchise agreement, the franchisee's business, or a controlling ownership interest in the franchisee or one of its owners. This also applies to a series of transfers, regardless of the time period, that collectively result in the transfer of the agreement or a controlling ownership interest.

For a prospective Byrider franchisee, understanding what constitutes a Control Assignment is crucial because it triggers a series of conditions that must be met before the transfer can be completed. These conditions ensure that the new owner is qualified and that Byrider's interests are protected.

These conditions include the proposed assignee demonstrating the necessary aptitude, skills, qualifications, credit, and financial resources to operate the business. The franchisee must also be in full compliance with all obligations to Byrider, including payment of all monetary obligations, submission of required reports, and adherence to all agreement provisions. Additionally, neither the assignee nor its owners can have an ownership interest in or perform services for a competitive business. The landlord must also allow the lease transfer, and the franchisee must not be in default under the lease. These stipulations are in place to maintain the integrity and standards of the Byrider franchise system.