What happens if either the Finance Entity or the franchisee breaches the Byrider Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Finance Entity and you each acknowledge and agree that an act or omission of one will be deemed to be the act or omission of the other, and each will be responsible for the consequences of that act or omission irrespective of who committed it. Further, a breach by either the Finance Entity or you of the Franchise Agreement will constitute a breach of the entire Franchise Agreement, and both the Finance Entity and you will bear liability for such breach, jointly and severally. While we may elect to do so, we are not required to proceed against the Finance Entity and you jointly or to proceed against one before proceeding against the other.
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- Personal Guarantees. Each of the undersigned Guarantors agrees that its guarantee under the Guarantee Agreement of the performance of the "franchisee" shall be deemed to be a guarantee of the performance of both the Finance Entity and you and that all references in the Guarantee Agreement to "franchisee" are deemed to be references to both.
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- Dispute Resolution. Any disputes involving this Agreement shall be resolved in accordance with and pursuant to the provisions of the Franchise Agreement applicable to the resolution of disputes under the Franchise Agreement. The parties hereby adopt and incorporate herein all such provisions of the Franchise Agreement (including, without limitation, provisions regarding the obligation to arbitrate, choice of law, and venue).
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, if either the Finance Entity or the franchisee breaches the Franchise Agreement, it constitutes a breach of the entire agreement. Both the Finance Entity and the franchisee will bear liability for the breach, jointly and severally. This means Byrider can pursue either party, or both, for the full amount of damages resulting from the breach.
This provision is significant because Byrider holds both the franchisee and their Finance Entity accountable for each other's actions. The franchisor is not required to first pursue one party before the other, giving them flexibility in addressing breaches. The personal guarantees provided by the franchisee extend to the performance of both the Finance Entity and the franchisee, further solidifying this shared responsibility.
Any disputes arising under the agreement will be resolved according to the dispute resolution provisions outlined in the Franchise Agreement, including arbitration, choice of law, and venue. This ensures that all parties are bound by the same terms and conditions, and that disputes will be handled in a consistent manner. Prospective franchisees should carefully consider the implications of this shared liability and the personal guarantees required before entering into a Byrider Franchise Agreement.