Does the Byrider franchise agreement disclaim representations made in the franchise disclosure document?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE FOLLOWING STATES: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ARTICLE II
ACKNOWLEDGMENTS
To induce the Company to enter into this Agreement the Franchisee acknowledges, warrants and represents as follows.
- 2.1 Independent Investigation. The Franchisee has had the opportunity to conduct an independent investigation of the business opportunity offered hereunder and the terms and provisions of this Agreement.
The Franchisee recognizes that the nature of the business described herein may evolve and change over time, that an investment in the franchise involves business risks and that the success of the venture depends primarily upon the Franchisee's business ability and efforts and other factors which are beyond the Company's control and which have nothing to do with the System or the Company's performance of its obligations under this Agreement.
- 2.3 No Representations Regarding Profits of the Franchise. No representations have been made by the Company or by its officers, directors, shareholders, employees or agents, and relied upon by the Franchisee as to future or past income, expenses, sales volume or potential profitability, earnings or income of the business franchised hereby, or any other franchisee, other than information provided in Item 19 of the Company's Franchise Disclosure Document.
EXHIBIT E TO FRANCHISE AGREEMENT
BYRIDER FRANCHISING PARTNERS, LLC
DISCLOSURE ACKNOWLEDGMENT STATEMENT
BYRIDER FRANCHISING PARTNERS, LLC ("Franchisor"), through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights ("Franchisee"), fully understands and comprehends that the purchase of a BYRIDER sales finance franchise is a business decision, complete with its associated risks, and (b) that Franchisee is not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by the Franchisor. In that regard, the undersigned acknowledges that:
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the franchise agreement includes provisions regarding acknowledgements made by the franchisee. Specifically, Byrider requires franchisees to acknowledge that they have conducted their own independent investigation of the business opportunity and that the success of the venture depends primarily on the franchisee's own abilities and efforts. The franchisee also acknowledges they are not relying on any representations regarding profits, income, or earnings of the business, except for information provided in Item 19 of the Franchise Disclosure Document.
However, the FDD also states that for franchisees in certain states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, no statement signed by the franchisee can disclaim reliance on any statement made by Byrider or its representatives. This provision supersedes any other term in any document executed in connection with the franchise. This suggests that while Byrider aims to ensure franchisees acknowledge their own responsibility and independent investigation, certain state laws prevent the franchisor from disclaiming responsibility for its own representations.
This means that while Byrider franchisees generally acknowledge the risks and their own responsibilities, franchisees in the specified states retain the right to claim reliance on statements made by Byrider, even if other documents suggest otherwise. Prospective franchisees should carefully review these provisions and understand how they apply in their specific state. Franchisees should also be aware that Byrider's disclosure acknowledgment statement requires the franchisee to acknowledge that they are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Byrider.