Where in the Byrider Franchise Agreement can I find information on the 'Grant of Franchise and License'?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
4.1 Grant of Franchise and License. Subject to the terms and conditions herein, the Company hereby grants to the Franchisee, and the Franchisee hereby accepts from the Company, (A) a non-exclusive franchise to open and operate one Business and (B) a non-exclusive license to use the System and the Marks solely in connection with the operation of the Franchisee's Business. Termination or expiration of this Agreement shall constitute a termination of the foregoing franchise and license. The Company will not operate or grant a franchise for the operation of another Business, the physical premises of which is located within the protected territory described on Exhibit A hereof (the "Protected Territory"); provided that the Company may operate and grant franchises for the operation of Businesses in the Protected Territory if the Company delivers a notice of default under this Agreement and Franchisee does not cure the default within the applicable cure period, if any.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, details regarding the 'Grant of Franchise and License' can be found in Article IV, Section 4.1 of the Franchise Agreement. This section outlines that Byrider grants the franchisee a non-exclusive franchise to operate one business and a non-exclusive license to use the Byrider system and marks. This grant is subject to the terms and conditions outlined in the agreement. The agreement specifies that termination or expiration of the agreement also terminates the franchise and license.
Byrider also retains the right to operate or franchise other businesses, even within the franchisee's protected territory, if the franchisee defaults on the agreement and fails to correct it within the given cure period. This clause emphasizes that the franchise and license are not absolute and are contingent upon the franchisee's compliance with the agreement's terms. The protected territory is described in Exhibit A of the Franchise Agreement.
This section is important for prospective franchisees as it clearly defines the scope and limitations of the franchise and license they are receiving. It highlights that the rights granted are non-exclusive, meaning Byrider can grant similar rights to others. It also underscores the importance of adhering to the terms of the Franchise Agreement to maintain these rights, as failure to do so could lead to their termination and the potential for Byrider to operate competing businesses within the franchisee's territory.