What is the 'Franchise Agreement' referenced in the lease addendum for a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord acknowledges that Tenant intends to operate a Byrider business at the Premises, and that Tenant's rights to operate a Byrider business and to use the Byrider® name, trademarks and service marks are solely pursuant to a franchise agreement ("Franchise Agreement'') between Tenant and Byrider Franchising Partners, LLC ("Franchisor").
Tenant's operations at the Premises are independently owned and operated.
Landlord acknowledges that Tenant alone is responsible for all obligations under the Lease unless and until Franchisor or another franchisee expressly, and in writing, assumes such obligations and takes actual possession of the Premises.
Notwithstanding any provisions of this Lease to the contrary, Landlord hereby consents, without payment of a fee and without the need for further Landlord consent, to (i) the collateral assignment of Tenant's interest in this Lease to Franchisor to secure Tenant's obligations to Franchisor under the Franchise Agreement, and/or (ii) Franchisor's succeeding to Tenant's interest in the Lease as a result of Franchisor's exercise of rights remedies under such collateral assignment or as a result of Franchisor's termination of the Franchise Agreement due to Franchisee's breach or termination of the Franchise Agreement by Franchisee without cause, or Franchisor's exercise of rights or remedies granted in or under, any other agreement between Franchisor and Tenant, and/or (iii) Tenant's, Franchisor's and/or any other franchisee of Franchisor's assignment of the Lease to another franchisee of Franchisor with whom Franchisor has executed its then-standard franchise agreement.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the 'Franchise Agreement' is the agreement between the prospective franchisee (referred to as Tenant in the lease addendum) and Byrider Franchising Partners, LLC (referred to as Franchisor) that grants the franchisee the right to operate a Byrider business. The lease addendum ensures that the landlord acknowledges this agreement and the franchisor's rights related to it. The franchisee's right to operate a Byrider business and use Byrider's trademarks is solely based on this Franchise Agreement.
The lease addendum outlines several key provisions related to the Franchise Agreement. It allows for the collateral assignment of the tenant's (franchisee's) interest in the lease to Byrider to secure the franchisee's obligations under the Franchise Agreement. It also allows Byrider to take over the lease if the Franchise Agreement is terminated due to the franchisee's breach or if the franchisee terminates the agreement without cause. Additionally, the lease can be assigned to another Byrider franchisee. These provisions protect Byrider's interests and ensure business continuity in case of franchisee issues.
Several exhibits attached to the Franchise Agreement, such as Exhibit F (Required Lease Addendum), Exhibit G (Affiliated Entity Joinder), and Exhibit H (Owner's Joinder), are referenced in the FDD. There are also addenda that modify the Franchise Agreement, such as the Addendum to Franchise Agreement for Traditional and Legacy Royalty Fee. These exhibits and addenda highlight the various aspects and potential modifications to the standard Franchise Agreement, depending on the specific circumstances of the franchisee and the agreement terms.
Furthermore, the FDD states that Byrider, as a third-party beneficiary, has the right to enforce the lease if it holds a collateral assignment. The landlord must also provide Byrider with a copy of the fully-executed lease. The franchisee cannot modify or terminate the lease without Byrider's written consent. These stipulations ensure Byrider's oversight and control over the lease terms, protecting its brand and operational standards.