Is Byrider Franchising Partners, LLC obligated to lease the Business Location from the Affiliate under the terms of the Affiliated Entity Joinder?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ANDLORD: TENANT:
EXHIBIT G
TO FRANCHISE AGREEMENT
BYRIDER FRANCHISING PARTNERS, LLC
AFFILIATED ENTITY JOINDER
| ("Affiliate"), an affiliate of | «Name_of_Franchisee», |
|---|---|
| «Entity_Type» ("Franchisee"), acknowledges and agrees that it is the owner of the real estate | |
| located at ("Business Location") and that it | |
| has leased the Business Location to Franchisee for the operation of a Byrider business pursuant to | |
| that certain Franchise Agreement dated «Month» «Day», «Year» by and between Byrider | |
| Franchising Partners, LLC ("Franchisor") and Franchisee (the "Franchise Agreement"). Affiliate | |
| agrees that upon termination of the Franchise Agreement by Franchisor due to Franchisee's breach | |
| or termination by Franchisee without cause prior to the scheduled expiration of this Agreement | |
| according to 5.1 herein, and upon written request of Byrider Franchising Partners, LLC, Affiliate | |
| will lease the Business Location to Franchisor or its designee at fair market rent for the operation | |
| of a Byrider business for a term of two (2) years. Affiliate acknowledges and agrees that nothing | |
| contained herein shall obligate Franchisor to lease the Business Location. |
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Affiliated Entity Joinder outlines specific conditions regarding the lease of the Business Location. The affiliate, who owns the real estate, agrees that if the Franchise Agreement is terminated due to the franchisee's breach or terminated by the franchisee without cause, and upon Byrider Franchising Partners, LLC's written request, the affiliate will lease the Business Location to Byrider or its designee. This lease would be at fair market rent for a term of two years.
However, the critical point is that the agreement explicitly states that Byrider Franchising Partners, LLC is not obligated to lease the Business Location under any circumstances. This means that even if the franchisee defaults or terminates the agreement early, Byrider retains the discretion to decide whether or not to take over the lease.
For a prospective franchisee, this clause offers a degree of protection. Byrider is not forced to assume the lease, which could be beneficial if the location is underperforming or no longer suits the brand's strategic interests. However, it also means that a franchisee cannot rely on Byrider to take over the location if they wish to exit the business, potentially leaving the franchisee responsible for the lease obligations.