In the Byrider Franchise Agreement, does the personal guarantee extend to the performance of both the Finance Entity and the franchisee?

According to the 2025 Byrider Franchise Disclosure Document, the personal guarantee extends to the performance of both the Finance Entity and the franchisee. Specifically, the guarantor agrees that their guarantee of the franchisee's performance covers both the Finance Entity and the franchisee. All references to "franchisee" in the Guarantee Agreement are considered references to both entities. This means that the personal guarantor is responsible for the actions and obligations of both the franchisee and the Finance Entity under the Franchise Agreement.

This provision has significant implications for the guarantor, as they are taking on a broader scope of responsibility. The guarantor must ensure that both the franchisee and the Finance Entity comply with all terms and conditions of the Franchise Agreement. A breach by either party can result in the guarantor being held liable. This arrangement is designed to provide Byrider with added security, ensuring that all aspects of the franchise operation are fully guaranteed.

For a prospective Byrider franchisee, this highlights the importance of carefully selecting a personal guarantor who is fully aware of the responsibilities they are undertaking. The guarantor should have a thorough understanding of the Franchise Agreement and the operations of both the franchisee and the Finance Entity. It is also advisable for the franchisee and the guarantor to maintain open communication and implement robust internal controls to minimize the risk of breaches and ensure compliance with the Franchise Agreement.