Following the termination of a Byrider franchise agreement, what activities related to winding-up or transferring the business is the franchisee permitted to engage in?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
all covenants contained in Article XVIII herein; (I) pay all costs, including attorneys' fees, incurred by the Company in terminating this Agreement.
Further, if the Franchisee or an affiliate of Franchisee is the titleholder of the Business Location and if the termination of this Agreement is due to Franchisee's breach prior to the scheduled expiration of this Agreement according to 5.1 herein, the Company shall have the right, but not the obligation, to enter into a lease for the Business Location at a fair market value rental for a term of two (2) years.
- 17.2 Termination of Access to BYRIDER Computer Software. Upon termination or expiration of this Agreement, the Software Agreement shall also concurrently expire or terminate. Upon such termination or expiration, the Company shall not be obligated to provide the Franchisee with access to the BYRIDER Computer Software or provide any services with respect thereto, except that the Company shall promptly make available to Franchisee (in a commercially reasonable media and form or format, as Company shall determine) any and all information needed to permit Franchisee (or its assignee) to collect its receivables and otherwise engage in an orderly transfer, transition or wind down of Franchisee's Business.
- 17.3 Survival of Obligations. The expiration or termination of this Agreement shall be without prejudice to any of the rights and remedies of the Company with respect to the foregoing obligations, competitive covenants and other like matters that reasonably would survive the end of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, after the termination of the franchise agreement, a franchisee can engage in activities usual and customary to winding up or transferring a business. These activities include the collection of receivables and providing transitional assistance to a transferee.
However, these activities are limited to a period not exceeding 90 days. After this 90-day period, the franchisee is subject to a one-year non-compete agreement. During this year, the franchisee and their owners (or their immediate family members) cannot engage, participate, or assist in any competitive business within a 25-mile radius of the former Byrider business or within a 10-mile radius of any Byrider business in operation or under construction.
Furthermore, upon termination or expiration of the Franchise Agreement, Byrider will provide the franchisee with access to information needed to collect receivables and facilitate an orderly transfer, transition, or wind-down of the business. This information will be provided in a commercially reasonable format as determined by Byrider.