Is a Byrider franchisee required to upgrade the Business Location for a Successor Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ee is not in compliance, the Company agrees to provide written notice to the Franchisee and the Franchisee will be able to cure within 5 business days of receipt of notice of its non-compliance. In the event of Franchisee cures its non-compliance within such period, Franchisee will be deemed to have met its obligation under 5.2C;
- D. The Franchisee has made, at its expense, such expenditures necessary to upgrade, remodel and redecorate the Business Location and the fixtures, equipment and supplies used in the Franchisee's Business to conform to the requirements of the System and the image of the Business at the commencement of the Successor Franchise Agreement (the "Necessary Modifications"); provided that the Company will not require any modifications to the exterior signage if the Company required an exterior signage modification within the five (5) years immediately preceding the expiration of this agreement. The Company shall notify the Franchisee of the Necessary Modifications within ninety (90) days after receipt of the Successor Franchise Notice;
- E.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee may be required to upgrade, remodel, and redecorate the Business Location to meet the System's requirements and image at the commencement of a Successor Franchise Agreement. These upgrades are at the franchisee's expense. However, Byrider will not require modifications to the exterior signage if exterior signage modification was required within the five years immediately preceding the expiration of the current agreement.
The franchisee will receive notification of these Necessary Modifications within ninety days after Byrider receives the Successor Franchise Notice. The franchisee must also execute the then-current franchise agreement and other forms that Byrider requires of new franchisees, which may contain materially different rights and obligations than the original agreement. However, the franchisee will not be required to pay an Initial Franchise Fee for the successor agreement.
In addition to upgrading the Business Location, the franchisee must meet other conditions to obtain a Successor Franchise Agreement. These conditions include compliance with all material terms and conditions of the current Franchise Agreement, adherence to Byrider's operating and quality standards, and satisfaction of all monetary obligations owed to Byrider. The franchisee must also settle or be actively defending against any pending claims from governmental agencies or authorities.
Meeting these conditions and completing the required upgrades are essential for a Byrider franchisee to secure additional five-year terms through Successor Franchise Agreements. Franchisees should carefully review these requirements and plan for the potential costs associated with upgrades and modifications to ensure they can maintain their franchise operations.