Does the Byrider FDD consider routine litigation incidental to the business as a disqualifying pending action?

According to the 2025 Byrider Franchise Disclosure Document, routine litigation incidental to the business is not necessarily considered a disqualifying pending action. The FDD states that Byrider Franchising Partners, its predecessor, people identified in Item 2, or an affiliate offering franchises under Byrider Franchising Partners' principal trademark, may have pending actions that are considered routine litigation incidental to the business.

However, these routine litigations cannot be significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations. This means that while Byrider or related parties may be involved in lawsuits that are a normal part of doing business, these lawsuits should not be so numerous or impactful that they raise concerns about the stability or viability of the Byrider franchise system.

This clause protects Byrider from being disqualified due to minor, everyday legal issues that arise in the course of business, while still ensuring that prospective franchisees are protected from significant legal risks that could affect the entire franchise system. A prospective franchisee should consider the number of franchisees and the size, nature, and financial condition of the franchise system to determine if any pending actions are significant.