What is the dependency between the Byrider Franchise Agreement and the Licensee's access to the Services?
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.
-
- 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. This license extends only to use for Licensee's own internal automobile sales business purposes and not for any direct or indirect benefit of third parties. Licensee agrees to access the Licensed System only by means of the equipment and procedures substantially similar to those designated in Appendix A attached hereto and incorporated herein by reference. Licensee agrees to use the Licensed System solely for the purposes of business initiated and conducted at the location specified in Appendix C, and additional locations may not be added without Licensor's approval. Licensee shall not use or access the Licensed System in connection with the performance of data processing services or as a service bureau for any third person. Licensee further agrees that it shall not use the Licensed System or transmit data to, through, or from the Hosting Facility in any manner that is contrary to any law or regulation of the United States or any state or country where Licensee is located. Licensee shall, at all times, use the Licensed System and access the Hosting Facility as directed by the Licensor from time to time.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the franchisee's access to Byrider's Licensed System and the associated services is directly tied to the Franchise Agreement. The Software Services and User Agreement is an integral part of the Franchise Agreement, granting the franchisee a non-exclusive license to access and use the Licensed System. This system is essential for the franchisee's 'buy-here-pay-here' automobile sales and collection management operations. The license allows franchisees to use the Licensed System to obtain services necessary for their automobile sales business, in accordance with the Franchise Agreement.
The FDD specifies that Byrider will provide the franchisee with access to the Licensed Software, which includes programs for generating retail installment sales contracts and monitoring receivables. This access is for data processing and other services related to the 'buy-here-pay-here' model. However, Byrider retains the right to suspend or limit the franchisee's access to these services if any payments due are more than 30 days past due, or as otherwise stipulated in the Franchise Agreement.
Upon termination or expiration of the Franchise Agreement, the Software Agreement also terminates concurrently. Byrider is then no longer obligated to provide the franchisee with access to the Byrider Computer Software or any related services. However, Byrider will provide the franchisee with the necessary information to collect receivables and facilitate an orderly transition or wind-down of the business. This ensures that even after the agreement ends, the franchisee can manage existing financial obligations and business closure effectively.