In the event that the Affiliate is required to lease the Business Location to Byrider Franchising Partners, LLC, what is the rental rate Byrider will pay?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ANDLORD: TENANT:
EXHIBIT G
TO FRANCHISE AGREEMENT
BYRIDER FRANCHISING PARTNERS, LLC
AFFILIATED ENTITY JOINDER
| ("Affiliate"), an affiliate of | «Name_of_Franchisee», |
|---|---|
| «Entity_Type» ("Franchisee"), acknowledges and agrees that it is the owner of the real estate | |
| located at ("Business Location") and that it | |
| has leased the Business Location to Franchisee for the operation of a Byrider business pursuant to | |
| that certain Franchise Agreement dated «Month» «Day», «Year» by and between Byrider | |
| Franchising Partners, LLC ("Franchisor") and Franchisee (the "Franchise Agreement"). Affiliate | |
| agrees that upon termination of the Franchise Agreement by Franchisor due to Franchisee's breach | |
| or termination by Franchisee without cause prior to the scheduled expiration of this Agreement | |
| according to 5.1 herein, and upon written request of Byrider Franchising Partners, LLC, Affiliate | |
| will lease the Business Location to Franchisor or its designee at fair market rent for the operation | |
| of a Byrider business for a term of two (2) years. Affiliate acknowledges and agrees that nothing | |
| contained herein shall obligate Franchisor to lease the Business Location. |
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if the Franchise Agreement is terminated due to the franchisee's breach or terminated by the franchisee without cause, and Byrider Franchising Partners, LLC requests it in writing, the Affiliate will lease the Business Location to Byrider or its designee. The rental rate will be at fair market rent. This lease would be for a term of two years. However, the document also states that Byrider is not obligated to lease the Business Location.
For a prospective franchisee, this means that if you, as the franchisee, default on your agreement or terminate it early without proper cause, and your affiliated entity owns the property, Byrider has the option to lease the location from your affiliate at the fair market rate for two years. This clause protects Byrider by ensuring they have continued access to the business location, minimizing disruption to their operations in the market.
It is important to note that the determination of "fair market rent" is subjective and could be a point of negotiation between the affiliate and Byrider. Furthermore, Byrider is not obligated to exercise this option, providing them with flexibility depending on the circumstances of the termination and the location's strategic importance.