What is the dependency between the Byrider Franchise Agreement and the Licensee's use of 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.
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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 franchisee's use of Byrider's software services is directly tied to the Franchise Agreement. The Byrider Software Services and User Agreement is incorporated as Exhibit D to the Franchise Agreement, making it a part of the overall agreement. This agreement grants the franchisee a nonexclusive, non-transferable license to access and use the Licensed System. This license is specifically for accessing the functions necessary to obtain services for the franchisee's automobile sales business, and it must be used in accordance with the Franchise Agreement.
Byrider requires franchisees to license and use the Byrider technology system to operate their day-to-day business. This system includes Byrider's proprietary software, off-the-shelf software, hardware, Software as a Service (SaaS) platforms from third-party providers, public cloud-based platforms, and a dealer management system with integrated Customer Relations Management (CRM). The CRM assists with handling agency and direct consumer complaints, which the franchisee is responsible for investigating and resolving.
Byrider retains the right to suspend or limit the franchisee's access to the Services if any amounts due to Byrider are more than thirty days past due or as otherwise provided in the Franchise Agreement. This dependency highlights the importance of adhering to the terms of both the Franchise Agreement and the Software Services Agreement to maintain uninterrupted access to the essential software and services required to operate the Byrider franchise.