In the event of termination of the Byrider Franchise Agreement, who is responsible for the costs, including attorney's fees, incurred by the Company?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
17.1 Obligations. In the event of the termination or expiration of this Agreement, whether by reason of default, lapse of time or other cause, the Franchisee shall: (A) promptly pay all amounts owed to the Company; (B) promptly return to the Company the Manual and other confidential materials including, without limitation, all the BYRIDER Computer Software; (C) maintain confidentiality of all proprietary and Confidential Information furnished by the Company; (D) immediately cease using any of the Marks except as provided for herein; (E) immediately make all alterations to the building facilities and exterior signs at the Business Location to distinguish them from the appearance and identity of a Business; if the Franchisee shall fail or refuse to make or cause such changes to be made, the Company, without prejudice to its other rights and remedies, may enter upon the Business Location, forcibly if necessary, without being guilty of trespass or any other tort, and make such changes at the Franchisee's expense except as provided for herein; (F) within thirty (30) days after the termination or expiration of this Agreement, cancel all Byrider telephone listings, numbers and directory advertising, and, if required by the Company, direct the transfer of the same to the Company or on its order; (G) take such actions as may be necessary or desirable to assign to the Company or the Company's designee any Internet domain names, assumed name, rights or equivalent registration which contain the Marks, including, without limitation, any slogans used by the Company, within thirty (30) days after the termination or expiration of this Agreement; (H) comply with all covenants contained in Article XVIII herein; (I) pay all costs, including attorneys' fees, incurred by the Company in terminating this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, in the event of termination of the Franchise Agreement, the franchisee is responsible for paying all costs, including attorney's fees, incurred by Byrider in terminating the agreement. This obligation arises regardless of whether the termination is due to default, lapse of time, or any other cause.
This means that if Byrider terminates the franchise agreement, the franchisee will be responsible for covering Byrider's legal expenses and other costs associated with the termination process. This can create a significant financial burden for the franchisee, especially if the termination is contested or involves complex legal proceedings.
Prospective franchisees should carefully consider this provision and understand the potential financial implications before entering into a franchise agreement with Byrider. It would be prudent to seek legal counsel to fully understand the scope of this obligation and to negotiate terms that may mitigate this risk.