Does the Byrider franchise agreement confer any rights or remedies to third parties?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Anything to the contrary herein notwithstanding, nothing in this Agreement is intended, nor shall it be deemed to confer upon any person or legal entity other than the Company or the Franchisee and such of their respective successors and assigns as may be contemplated by this Agreement, any rights or remedies under or by reason of this Agreement, except as provided in Section 18.5 and Section 19.1.
The provisions of this Subsection are intended to benefit and bind certain third party non-signatories and will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the franchise agreement generally does not confer rights or remedies to third parties, with a few specific exceptions. Article XX, Section 20.2 of the agreement states that it is not intended to grant any rights or remedies to anyone other than Byrider and the franchisee, or their successors and assigns, except as provided in Section 18.5 and Section 19.1.
However, there is an exception related to dispute resolution. The FDD notes that the provisions regarding seeking temporary restraining orders and injunctive relief are intended to benefit and bind certain third-party non-signatories. This means that in specific legal situations, certain third parties might be able to benefit from or be bound by these provisions, even though they are not direct signatories to the agreement.
Prospective franchisees should carefully review Sections 18.5 and 19.1, as well as the provisions regarding dispute resolution, to fully understand the circumstances under which third parties might have rights or obligations under the Byrider franchise agreement. Understanding these exceptions is crucial for assessing potential legal implications and liabilities related to the franchise.