What constitutes grounds for Byrider franchise termination related to insolvency or inability to pay debts?

According to the 2025 Byrider Franchise Disclosure Document, Byrider can terminate a franchise agreement if the franchisee makes an assignment for the benefit of creditors or admits in writing their insolvency or inability to pay debts as they become due. This means that if a franchisee formally declares they cannot meet their financial obligations, Byrider has grounds to terminate the agreement.

Additionally, Byrider may terminate the franchise if the franchisee consents to the appointment of a receiver, trustee, or liquidator for all or a substantial part of its property. Similarly, if the franchisee's business is attached, seized, subjected to a writ or distress warrant, or levied upon, it can lead to termination, unless the action is vacated within thirty (30) days. Furthermore, if any order appointing a receiver, trustee, or liquidator of the franchisee or the franchisee's business is not vacated within thirty (30) days following the order's entry, Byrider has grounds for termination.

These conditions protect Byrider from franchisees who are unable to manage their finances and could negatively impact the Byrider brand. Franchisees should be aware of these terms and ensure they have a solid financial plan to avoid such situations. It is important to note the 30-day windows provided to resolve certain issues, highlighting the importance of prompt action in the face of financial difficulties.