Does the franchisee have the right to a jury trial in any action against Byrider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
20.7 Jury Trial Waiver. The Company and the Franchisee irrevocably waive trial by jury in any action, proceeding or counterclaim, whether at law or in equity, brought by either of them.
20.8 Punitive Damage Waiver. The Company and the Franchisee irrevocably waive any claim to punitive damages in any action, proceeding or counterclaim, whether at law or in equity brought by either of them.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the standard franchise agreement includes a clause where both Byrider and the franchisee waive their right to a jury trial in any legal action. Specifically, Section 20.7 of the Franchise Agreement initially states that both parties "irrevocably waive trial by jury". This means that under the standard agreement, disputes would be resolved by a judge rather than a jury. This is a significant legal point, as a jury trial can sometimes be more favorable to a franchisee depending on the circumstances.
However, the FDD also includes state-specific amendments that may override this waiver. For example, for franchisees operating in North Dakota, Section 20.7 of the Franchise Agreement is deleted in its entirety, meaning that the jury trial waiver does not apply. Similarly, Minnesota law might prohibit Byrider from requiring a waiver of a jury trial, meaning that Minnesota franchisees may retain their right to a jury trial despite the initial waiver in the agreement.
Prospective franchisees should carefully review the state-specific addenda to the Franchise Agreement to understand whether the jury trial waiver applies in their state. It is also advisable to consult with an attorney to fully understand the implications of waiving this right and to assess the legal landscape in their specific jurisdiction. The interplay between the standard agreement and state laws can significantly impact a franchisee's legal recourse in case of a dispute with Byrider.