After the Byrider franchise is terminated or expires, what is the geographic limit within which I am restricted from having an interest or involvement in a competing business near my Byrider business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Provision | Section in Franchise Agreement or other | Summary | |----|---------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | r. | Non-competition covenants after the franchise is terminated or expires | Article 18.2 | Subject to state law, no interest or involvement in a competing business for 1 year within 25 miles of your Business or within 10 miles of any other Byrider-branded business. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–63)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to a non-competition covenant. This means the franchisee cannot have an interest or involvement in a competing business for one year. This restriction applies within 25 miles of the franchisee's former Byrider business location or within 10 miles of any other Byrider-branded business. The non-compete is subject to state law, meaning that the enforceability and specific terms could vary depending on the state where the franchise is located.
This non-compete agreement prevents former franchisees from using Byrider's confidential information and business strategies to compete against the franchise system shortly after their departure. The geographic scope is designed to protect existing Byrider locations from direct competition by a former franchisee who might try to capitalize on their established reputation and customer base.
For a prospective franchisee, this means carefully considering the implications of the non-compete before investing in a Byrider franchise. It is important to understand the specific state laws governing non-compete agreements and how they might affect your ability to operate a similar business after leaving the Byrider system. Franchisees should seek legal counsel to fully understand the restrictions and their potential impact.
It is also worth noting that the terms of the non-compete, including the duration and geographic scope, are subject to state law. This means that the specific restrictions could be different depending on where the franchise is located. Prospective franchisees should consult with an attorney to understand the specific non-compete laws in their state and how they might affect their ability to operate a similar business after leaving the Byrider system.