Can Byrider Franchising Partners license the use of the Marks in businesses other than the Byrider Business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners retains the right to (a) add new programs, products and/or services to the Business at any time; (b) establish, operate and franchise a business offering and selling products and/or services which maybe the same or similar to the products and services offered by the Business under any trade names, trademarks, service marks or logos other than the Marks; (c) use or license the use of the Marks in business other than the Business; (d) acquire the assets or ownership interests of one or more businesses providing products and services similar to those provided by the Business, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating, including within your Protected Territory; (e) be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at the Business, or by another business; and (f) engage in all other activities not expressly prohibited under the Franchise Agreement.
Source: Item 12 — (FDD pages 50–51)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners retains the right to license the use of the Marks (Byrider's trademarks, service marks, or logos) in businesses other than the Byrider Business. This means that Byrider Franchising Partners has the authority to allow other businesses, potentially outside of the Byrider franchise system, to use the Byrider brand name and associated logos.
This clause in the franchise agreement gives Byrider Franchising Partners significant flexibility in how they manage and expand the Byrider brand. It allows them to explore opportunities outside of the traditional franchise model, which could include licensing the brand for related products or services. However, this also presents a potential risk for franchisees. If Byrider licenses the brand to other businesses, it could create competition or dilute the brand's value, especially if those businesses do not adhere to the same standards as Byrider franchisees.
Prospective franchisees should carefully consider this provision and how it might impact their investment. While Byrider Franchising Partners currently has no plans to do so, they reserve the right to operate or offer franchises in businesses that sell goods or services similar to or competitive with yours, and Byrider Franchising Partners may offer those goods and services under different trade names or trademarks. It is important to understand the potential implications of Byrider Franchising Partners' ability to license the Marks to other businesses and to assess the potential impact on the franchisee's business and territory. Franchisees should discuss with Byrider how they intend to manage the brand and ensure consistency across all businesses using the Byrider name.