Can a Byrider franchisee recruit employees of other Byrider franchisees during the term of the agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and its owners agree that, during this Agreement's term, neither Franchisee, nor any owner, nor any member of Franchisee's or an owner's immediate family will:
- (c) recruit or hire any employee of Company, Company's affiliates or Company's franchisees without obtaining prior written permission from such employer;
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 the 2025 Byrider Franchise Disclosure Document, a franchisee is restricted from recruiting or hiring employees of the company, its affiliates, or other Byrider franchisees during the term of the agreement without obtaining prior written permission from the employer. This means that a Byrider franchisee cannot actively solicit or hire employees who work for Byrider itself, any of Byrider's affiliated companies, or any other Byrider franchisee unless they first get written approval from that employee's current employer.
This restriction is part of the broader covenants not to compete outlined in the franchise agreement. These covenants aim to protect Byrider's investment in its employees and the stability of its franchise network. By requiring written permission, Byrider aims to prevent franchisees from poaching skilled employees from each other, which could disrupt operations and create competitive imbalances within the system.
However, if a Byrider franchisee violates this clause by hiring an employee without written consent, the franchisee must immediately pay damages equal to three times the annual compensation of the individual to the Company (or its affiliate) or Byrider Business, as applicable. This substantial penalty serves as a deterrent against unauthorized recruitment and hiring practices. Prospective franchisees should be aware of this restriction and the associated costs of non-compliance when considering a Byrider franchise.