What is the deadline from the execution of the Byrider franchise agreement for the franchisee to open their business to the public?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
16.1 The Company's Right to Terminate Prior to Opening.
- A. The Company shall have the right to terminate this Agreement forthwith if:
- (1) Prior to the Franchisee's Business opening, the Franchisee shall have failed to satisfactorily complete the Initial Training Program as required herein. The Franchisee acknowledges that because of the Company's skill and knowledge with respect to the training and skill required to manage the Business, its decision whether or not the Franchisee has satisfactorily completed such training may be made by the Company in the good faith exercise of its sole, subjective judgment;
- (2) The Franchisee's Business is not opened to the public for business within one (1) year of the execution of this Agreement;
- (3) Any financial, personal or other information provided by the Franchisee to the Company in connection with the Franchisee's application for the franchise is materially false, misleading, incomplete or inaccurate.
- B. If the Company elects to terminate this Agreement pursuant to this Section, the Company shall notify the Franchisee of its election. If, at the time of such termination, the Franchisee has entered into a binding lease or purchase agreement for the Business Location or has entered into binding purchase orders for the purchase of equipment or fixtures to be installed in the Business Location, the Company shall have the right but not the obligation to require the Franchisee to use its best efforts to assign its rights under the lease, purchase agreements and purchase orders to the Company or its designee. If the Company elects, and such assignments are made, the Company or its designee shall assume all of Franchisee's obligation under such lease, purchase agreements and purchase orders. If the Company exercises its right to terminate pursuant to this Article, this Agreement shall be null, void and of no effect, and neither party shall have any further right or obligation to the other except those obligations which, by their nature, survive such termination.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, a franchisee has one year from the date of the execution of the franchise agreement to open their business to the public. Failure to open the business within this timeframe gives Byrider the right to terminate the franchise agreement.
This requirement ensures that franchisees promptly establish and begin operating their Byrider business. It aligns with Byrider's interest in having active and revenue-generating locations.
If Byrider terminates the agreement due to the franchisee's failure to open on time, and the franchisee has entered into a lease or purchase agreement for the business location or has entered into binding purchase orders for equipment or fixtures, Byrider has the option to require the franchisee to assign their rights under those agreements to Byrider or its designee. If Byrider exercises this option, it will assume the franchisee's obligations under the lease, purchase agreements, and purchase orders. This protects Byrider from potential losses if a franchisee fails to open the business and allows Byrider to take over the location and assets.
This provision underscores the importance of careful planning and execution in the initial phase of establishing a Byrider franchise. Prospective franchisees should ensure they have a solid plan and the resources necessary to open their business within the one-year timeframe to avoid potential termination of the agreement.