What is the dependency between the Byrider Franchise Agreement and the Licensee's access to the Licensed System?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
icensee data processing and other services related to the "buy-here-pay-here" automobile sales and collection management systems, particularly generation of specific retail installment sales and security contracts from input data and monitoring of receivables and collection productivity by Licensee (hereinafter referred to as "Services"). Licensor shall have the right to suspend or limit, in whole or in part, Licensee's access to the Services upon ten (10) days written notice to Licensee if any amounts due Licensor are more than thirty (30) days past due or as otherwise provided in the Franchise Agreement.
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- License. Subject to all the terms and conditions of this Agreement and the Franchise Agreement, Licensor hereby grants to Licensee, and Licensee hereby accepts, a nonexclusive, indivisible, non-transferable license to access and use the Licensed System in a manner consistent with the terms of this Agreement. Such license is provided for the sole purpose of allowing Licensee access to the functions of the Licensed System necessary to obtain the Services for the sole use of Licensee's automobile sales business pursuant to and in accordance with the Franchise Agreement. It is the responsibility of the Licensee alone to ensure that the Licensed System fulfills the individual requirements and goals of the Licensee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the Byrider Software Services and User Agreement is directly linked to the Franchise Agreement. This agreement grants the franchisee (Licensee) a non-exclusive, non-transferable license to access and use Byrider's Licensed System. This system includes software, documentation, and infrastructure necessary for operating a "buy-here-pay-here" automobile sales business. The franchisee's access to and use of the Licensed System is specifically for obtaining services related to this business, in accordance with the terms of the Franchise Agreement.
The Software Services and User Agreement outlines that the license to use the Licensed System is subject to all the terms and conditions of both the Software Services and User Agreement itself and the overarching Franchise Agreement. This means that the franchisee's rights and responsibilities regarding the software are intertwined with their obligations as a Byrider franchisee. The franchisee is solely responsible for ensuring that the Licensed System meets their individual business requirements and goals.
Termination of the Franchise Agreement automatically leads to the expiration or termination of the Software Services and User Agreement without any further notice. Additionally, Byrider has the right to terminate the Software Services and User Agreement if the franchisee defaults on any obligations within the agreement and fails to correct the default within ten days of written notice. This dependency highlights that the franchisee's ability to use Byrider's essential software and systems is contingent upon maintaining a valid and compliant Franchise Agreement.