Is a Byrider franchisee required to execute the then-current franchise agreement for a Successor Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee executes the then current franchise agreement and other forms the Company is then requiring of new franchisees, which may contain rights and obligations which are materially different than those contained in this Agreement, except that the Franchisee will not be required to pay an Initial Franchise Fee;
The failure by the Franchisee to sign the agreements and the release described in Subsection E and F above within thirty (30) days after delivery thereof to the Franchisee or, if sooner, by the expiration of the Term shall be deemed an election by the Franchisee not to obtain such successor franchise.
In the event the Company decides not to grant a successor franchise because the Company no longer offers new franchise agreements for Businesses and Franchisee does not operate any other Business pursuant to a franchise agreement with the Company, the Company shall hold implementation of the provisions of Sections 17.1.D, E, F, G, H and 17.2 in abeyance for such reasonable period of time as is necessary (not to exceed 120 days) for the Franchisee to implement, at its sole expense, a transition of Franchisee's Business to new systems, new signage, etc. without charge to the transferee therefor and Section 18.2 shall be inapplicable.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, a franchisee is required to execute the then-current franchise agreement to obtain a Successor Franchise Agreement. This agreement may include terms and conditions that are significantly different from the original franchise agreement.
Specifically, to obtain a successor franchise, the Byrider franchisee must execute the franchise agreement currently in use by Byrider for new franchisees. The new agreement may contain obligations that differ materially from the original agreement. However, the franchisee is not required to pay an initial franchise fee for the successor franchise.
The franchisee's failure to sign the new agreements and a general release within thirty days of delivery, or by the expiration of the current term, will be considered an election not to obtain a successor franchise. Byrider also retains the right to deny a successor franchise if they are no longer offering new franchise agreements for Businesses.