Does the Byrider franchise agreement consider the issuance of additional securities as a 'Transfer'?

According to the 2025 Byrider Franchise Disclosure Document, the issuance of additional securities or other forms of ownership interest is considered a 'Transfer' under the franchise agreement. This falls under the broader category of events that constitute a transfer, which require the company's prior written approval.

This means that if a Byrider franchisee plans to issue additional securities or other forms of ownership interest in their franchise business, they must first obtain written approval from Byrider. This requirement is in place because Byrider wants to ensure that any changes in ownership or equity do not compromise the franchisee's ability to operate the business effectively or align with Byrider's standards. Byrider emphasizes that the rights and duties created by the agreement are personal to the franchisee and its owners, and the franchise was granted based on Byrider's assessment of their character, skills, and financial capacity.

The FDD specifies that the term 'Transfer' includes both voluntary and involuntary assignments, sales, gifts, or other dispositions, further clarifying the breadth of this restriction. This provision aims to maintain the integrity and consistency of the Byrider franchise system by controlling who has an ownership stake in each franchise location. Any transfer made without Byrider's approval is considered a breach of the agreement and has no legal effect.