What is the definition of the 'Protected Territory' granted to a Byrider franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
icle 6.7).
ITEM 12
TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Your Business will be granted for a specific location or a location subject to Byrider Franchising Partners' approval. You may choose to relocate your Business, but you must first obtain Byrider Franchising Partners' written approval. If your lease for the physical premises of your Business terminates without your fault, or if the physical premises is damaged, condemned or otherwise unusable, or if in your and Byrider Franchising Partners' reasonable judgment there is a change in the character of the location of the Business sufficiently detrimental to its business potential to warrant its relocation, Byrider Franchising Partners will grant permission to you for relocation of the Business.
Byrider Franchising Partners will not operate or grant a franchise for the operation of another Byrider Business, the physical premises of such Business which is located within a protected territory designated by Byrider Franchising Partners (the "Protected Territory"). The boundaries of your Protected Territory may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, a certain radius surrounding the physical premises of your Byrider Business, or otherwise delineated on a map. Byrider Franchising Partners typically grants a Protected Territory comprising a radius of 2 miles surrounding the Business Location. However, Byrider Franchising Partners may operate and grant franchises for the operation of Byrider Businesses in the Protected Territory if Byrider Franchising Partners delivers a notice of default under the Franchise Agreement to you, upon which you do not cure the default within the applicable cure period, if any.
You may solicit customers, and use other methods of distribution, including the Internet, catalog sales, telemarketing, and other direct marketing, outside of your Protected Territory. Further, Byrider Franchising Partners or other franchisees may solicit customers inside your Protected Territory. You will not receive any compensation from Byrider Franchising Partners in connection with any production, distribution or sales described in this paragraph.
Byrider Franchising Partners retains the right to (a) add new programs, products and/or services to the Business at any time; (b) establish, operate and franchise a business offering and selling products and/or services which maybe the same or similar
to the products and services offered by the Business under any trade names, trademarks, service marks or logos other than the Marks; (c) use or license the use of the Marks in business other than the Business; (d) acquire the assets or ownership interests of one or more businesses providing products and services similar to those provided by the Business, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating, including within your Protected Territory; (e) be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at the Business, or by another business; and (f) engage in all other activities not expressly prohibited under the Franchise Agreement.
If you sign an Area Development Agreement and comply with its terms and conditions, you will be granted a protected territory and Byrider Franchising Partners cannot license other Byrider franchises or open company-owned Byrider Businesses within your protected territory.
Source: Item 12 — (FDD pages 50–51)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, Byrider may grant a 'Protected Territory' around the franchisee's specific location. This Protected Territory is designated by Byrider and the boundaries can be defined using zip codes, streets, landmarks, county lines, or a radius around the business location. Byrider typically grants a Protected Territory comprising a radius of 2 miles surrounding the Business Location.
Even within this Protected Territory, Byrider retains certain rights. Byrider can operate or grant franchises to others within the territory if the franchisee defaults on the Franchise Agreement and fails to correct the default within the given cure period. Furthermore, Byrider or other franchisees are allowed to solicit customers within a franchisee's Protected Territory, and the franchisee will not receive any compensation for sales made by others within their territory.
If a franchisee signs an Area Development Agreement and complies with its terms, Byrider will grant a protected territory where it cannot license other Byrider franchises or open company-owned Byrider businesses. This protected territory under an Area Development Agreement will consist of the counties or cities the franchisee has agreed to develop. The continuation of these territorial rights does not depend on achieving sales quotas or market penetration levels, but Byrider can modify or terminate the rights if the franchisee fails to meet the development schedule or defaults under the Area Development Agreement. Byrider must approve the location of any future Byrider Business developed under the Area Development Agreement, and its current standards for sites and territories will apply.
Prospective franchisees should be aware that Byrider retains significant flexibility in managing its franchise network, even within designated Protected Territories. The lack of an exclusive territory and the ability of Byrider and other franchisees to solicit customers within the Protected Territory could lead to increased competition and potentially impact a franchisee's revenue. It is important to fully understand the terms and conditions of both the standard Franchise Agreement and any Area Development Agreement before investing in a Byrider franchise.