What governing law applies to the Byrider franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires application of the laws of the State of Indiana with certain exceptions. These provisions may not be enforceable under California law.
- GOVERNING LAW. The following paragraph is added to the end Section 20.5 ("Governing Law") of the Franchise Agreement:
Notwithstanding the foregoing, (1) any state law regulating the offer or sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless its jurisdictional requirements are met independently without reference to this section, and (2) the enforceability of those provisions of this Agreement which relate to restrictions on the Franchisee and its owners' competitive activities will be governed by the laws of the state in which Franchisee's Business is located.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the franchise agreement generally requires application of the laws of the State of Indiana. However, there are exceptions to this rule, particularly in states like California and North Dakota.
In California, if any provision in the Franchise Agreement is inconsistent with the California Business and Professions Code Sections 20000 through 20043, those sections of the California code will take precedence if they apply. Additionally, the enforceability of non-compete clauses extending beyond the termination of the agreement may not be enforceable under California law.
For North Dakota franchisees, any state law regulating the offer or sale of franchises or governing the franchisor-franchisee relationship will not apply unless its jurisdictional requirements are met independently. Furthermore, the enforceability of provisions related to restrictions on the franchisee's and its owners' competitive activities will be governed by the laws of the state in which the franchisee's business is located. This means that while the agreement may state Indiana law governs, the laws of the state where the Byrider franchise operates could override certain provisions, especially those concerning competition and franchise regulations.