What geographic radius around a former Byrider franchise location is the franchisee prohibited from operating a Competitive Business after termination?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2 After Termination. With the exception of activities usual and customary to the winding-up or transfer of a business (e.g. collection of receivables, transitional assistance to a transferee, etc.) not to exceed 90 days, which activities Company hereby affirms that Franchisee shall have the right in which to engage, Franchisee agrees that for a period of one (1) year immediately following the expiration or termination of this Agreement or any Successor Franchise Agreement, neither it nor any of its owners (or their immediate family members) will (i) engage, participate or assist in any way in the operation of or (ii) have any direct or indirect interest (whether as an owner, investor, partner, director, officer, employee, consultant, representative, agent, landlord, or otherwise) in, any Competitive Business that is located within a twenty-five (25) mile radius of Franchisee's Business or within a ten (10) mile radius of any Business in operation or under construction as of the date of expiration or termination of this Agreement. The one (1) year post-Term noncompete period in this Article 18.2 shall begin on the date Franchisee complies with Article 18.2.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, after the termination or expiration of the Franchise Agreement, a franchisee is restricted from engaging in a Competitive Business within specific geographic boundaries. This restriction lasts for one year immediately following the termination or expiration of the agreement. This non-compete obligation does not include activities related to winding up or transferring the business, such as collecting receivables or providing transitional assistance, for up to 90 days.
Specifically, the franchisee and their owners (or their immediate family members) cannot participate in or have any direct or indirect interest in a Competitive Business. This restriction applies within a 25-mile radius of the franchisee's former Byrider Business location. Additionally, the restriction extends to a 10-mile radius of any Byrider Business that is in operation or under construction as of the termination date of the Franchise Agreement.
This means that a former Byrider franchisee needs to be aware of these geographic restrictions if they plan to engage in a similar business after their franchise agreement ends. They must avoid any involvement in a Competitive Business within the defined radius for one year to comply with the terms of the agreement. The non-compete period begins when the franchisee complies with Article 18.2 of the agreement.