What is the duration of the restriction on a Byrider franchisee from hiring employees of Byrider or its affiliates after the franchise agreement terminates or expires?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.5 Fee for Employment Practices. Franchisee acknowledges that the Company and Byrider Businesses make substantial investment in the hiring, training, and developing of its and their employees. Although Franchisee is not restricted from soliciting and/or hiring such employees, Franchisee agrees that if, during the Term and for a one (1)-year period after the termination or expiration of this Agreement, Franchisee or any of its owners, directly or indirectly, on behalf of itself or any other person (whether as an owner, employee, agent, consultant or in any other capacity), employs any person who is an employee of, or who, within one year of being hired by Franchisee, was previously employed by, the Company (or any of its affiliates) or any Byrider Business, without the written consent of the Company (or such affiliate) or such Byrider Business, then Franchisee must immediately pay an amount of damages equal to three (3) times the annual compensation of such individual to the Company (or its affiliate) or Byrider Business, as applicable.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, there is a one-year period after the termination or expiration of the franchise agreement during which a franchisee faces financial consequences for hiring employees of Byrider or its affiliates.
Specifically, if a Byrider franchisee or any of its owners directly or indirectly employs someone who is currently an employee of Byrider (or any of its affiliates) or was an employee within one year of being hired by the franchisee, the franchisee must pay damages. This restriction applies unless the franchisee obtains written consent from Byrider.
The amount of damages the Byrider franchisee must pay is equal to three times the annual compensation of the employee hired. This fee is designed to compensate Byrider for its investment in hiring, training, and developing its employees and those of its affiliated businesses. This policy aims to protect Byrider's investment in its workforce by discouraging franchisees from poaching employees who possess valuable knowledge and skills specific to the Byrider system.