How does Byrider define 'incapacity' in the context of franchisee death or incapacity?

According to Byrider's 2025 Franchise Disclosure Document, the term 'incapacity' is specifically defined within the context of the death or incapacity of a franchisee or their principal owner. Byrider defines incapacity as a mental or physical disability, impairment, or condition. This condition must be reasonably expected to prevent, or actually prevent, the franchisee or their principal owner from effectively supervising the management and operation of the Byrider franchise business.

This definition is important because it triggers certain requirements regarding the transfer of the franchise. If a franchisee or their principal owner becomes incapacitated, their heirs or representatives have 180 days to transfer the franchise to a Byrider-approved person or entity. This transferee must meet Byrider's standards for new franchisees and typically complete the initial training program within 90 days of the death or incapacity.

However, there is an exception: if the transferee is an immediate family member, they are not required to execute the then-current form of the franchise agreement. Furthermore, if the franchisee already employs a manager who has completed the training program, that manager is considered to have satisfied the training requirements. This provides some flexibility and continuity for the business during a difficult transition.

For a prospective Byrider franchisee, understanding this definition and the related transfer requirements is crucial. It clarifies the process and expectations in the event of unforeseen circumstances, ensuring that the business can continue operating under approved management while also protecting the interests of both the franchisee's family and the Byrider franchise system.