What constitutes grounds for termination of the Byrider agreement by the licensor?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- Termination. This Agreement shall automatically and without notice expire or terminate concurrently with the expiration or termination of the Franchise Agreement. In addition, if, at any time, Licensee defaults in the performance of any of its obligations under this Agreement and such default is not corrected within ten (10) days after Licensor has given Licensee written notice specifying such default, in addition to any other remedies that it may have, Licensor shall have the right to terminate this Agreement for cause by giving written notice of termination to Licensee, and this Software License Agreement shall then immediately terminate. Termination shall not relieve either party of its pre-existing obligations under this Agreement. Upon initiation of any bankruptcy or receivership proceedings by or against Licensee, or upon execution of a deed of trust or assignment for the benefit of creditors or any other transfer or assignment of a similar nature by Licensee, Licensor reserves the right to terminate this Agreement immediately or at any time thereafter.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the licensor can terminate the Software License Agreement under specific conditions. The agreement automatically expires or terminates when the Franchise Agreement expires or terminates. Additionally, if the licensee fails to meet their obligations under the agreement and does not correct the issue within ten days after receiving written notice from Byrider specifying the default, Byrider has the right to terminate the agreement for cause with written notice. This termination takes effect immediately.
Furthermore, Byrider reserves the right to terminate the agreement immediately if the licensee initiates bankruptcy or receivership proceedings, executes a deed of trust, makes an assignment for the benefit of creditors, or engages in any similar transfer or assignment. Termination does not relieve either party of their pre-existing obligations under the agreement.
It is important for a prospective Byrider franchisee to understand these termination conditions, as they outline the circumstances under which their access to the Licensed System can be revoked. This includes both failing to meet contractual obligations and facing financial distress. Franchisees should also note that termination does not eliminate any existing responsibilities they have under the agreement.