Is a Byrider franchisee allowed to use Byrider Franchising Partners' confidential information in an unauthorized manner during the term of the Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Manuals and other materials Byrider Franchising Partners possesses contain Byrider Franchising Partners' confidential information. This information includes methods, formats, specifications, standards, systems, procedures, sales and marketing techniques and knowledge of and experience used to develop and operate Byrider Businesses as well as particular methods of processing and tracking financial information about Byrider Franchising Partners customers. The unique formula Byrider Franchising Partners uses for credit approval of Byrider Franchising Partners customers is confidential information. You may not use Byrider Franchising Partners' confidential information in an unauthorized manner either during or after the term of the Franchise Agreement and must take reasonable steps to prevent its disclosure to others. For example, you may not duplicate any part of the Operating Manual, remove the manual at your Business location or fail to return it to Byrider Franchising Partners when the franchise term is over.
Source: Item 14 — (FDD pages 54–55)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider franchisees are prohibited from using Byrider Franchising Partners' confidential information in an unauthorized way during the term of the Franchise Agreement. This restriction also extends beyond the agreement's term. Franchisees must also take reasonable steps to prevent the disclosure of this confidential information to others.
The confidential information includes methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, and knowledge used to operate Byrider businesses. It also encompasses specific methods for processing and tracking financial information about Byrider customers, including the unique formula used for credit approval.
To protect this information, franchisees are not allowed to duplicate any part of the Operating Manual, remove the manual from the business location, or fail to return it to Byrider Franchising Partners when the franchise term ends. This underscores the importance of maintaining the confidentiality of Byrider's proprietary information, as unauthorized use or disclosure could have legal and financial repercussions for the franchisee.