Is a Byrider franchisee prohibited from soliciting employees of Byrider or its affiliates?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.5 Fee for Employment Practices. Franchisee acknowledges that the Company and Byrider Businesses make substantial investment in the hiring, training, and developing of its and their employees. Although Franchisee is not restricted from soliciting and/or hiring such employees, Franchisee agrees that if, during the Term and for a one (1)-year period after the termination or expiration of this Agreement, Franchisee or any of its owners, directly or indirectly, on behalf of itself or any other person (whether as an owner, employee, agent, consultant or in any other capacity), employs any person who is an employee of, or who, within one year of being hired by Franchisee, was previously employed by, the Company (or any of its affiliates) or any Byrider Business, without the written consent of the Company (or such affiliate) or such Byrider Business, then Franchisee must immediately pay an amount of damages equal to three (3) times the annual compensation of such individual to the Company (or its affiliate) or Byrider Business, as applicable.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are not restricted from soliciting or hiring employees of Byrider or its affiliates. However, there are financial implications if a franchisee hires such an employee.
Specifically, if a Byrider franchisee (or any of its owners) employs someone who is currently or was previously (within one year of being hired by the franchisee) an employee of Byrider (or any of its affiliates) or any Byrider Business, the franchisee must pay damages. This applies if the franchisee hires the employee during the term of the Franchise Agreement or within one year after the agreement's termination or expiration.
The amount of damages the Byrider franchisee must pay is equal to three times the annual compensation of the employee. This payment is made to Byrider (or its affiliate) or the Byrider Business, as applicable, unless the franchisee obtains written consent from Byrider (or the relevant affiliate) or Byrider Business to hire the employee.