What is the geographic limit of the protected territory granted to a Byrider franchisee, measured from the Business Location?

According to Byrider's 2025 Franchise Disclosure Document, a franchisee's protected territory extends within a 2-mile radius surrounding the Business Location. This means Byrider will not operate or grant a franchise to another business within that 2-mile radius. However, this protection is conditional. Byrider retains the right to operate or franchise another business in the Protected Territory if the franchisee defaults on the agreement and fails to correct the issue within the given cure period.

It is important to note that while Byrider grants this protected territory, the franchisee does not have marketing exclusivity within it. Other Byrider businesses, whether company-owned or franchised, can solicit clients and advertise within the franchisee's protected territory. This lack of marketing exclusivity means a franchisee may face competition from other Byrider locations even within their protected area.

Furthermore, Byrider's rights are not entirely limited to the Business Location. The company retains the right to sell, distribute, and provide products and services of any kind, under the Byrider marks or otherwise, anywhere except at the franchisee's specific Business Location. This clause provides Byrider with considerable flexibility in its operations and potential market strategies, which could impact a franchisee's business.

If Byrider determines, based on demographic changes or other factors, that an additional Byrider business should be established in the Protected Territory, the franchisee has a right of first refusal to acquire an additional franchise for that location. To exercise this right, the franchisee must meet Byrider's then-current criteria for franchisees, demonstrate sufficient capital, and sign the current franchise agreement. If the franchisee declines or does not qualify, Byrider can modify the Protected Territory when granting a successor franchise, and the franchisee loses the right of first refusal for the removed territory.