What happens if a Byrider franchisee or its affiliate owns the approved business location?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee or its affiliate owns the approved Business Location, Franchisee agrees that upon termination of this Agreement by Company due to Franchisee's breach or termination by Franchisee without cause prior to the scheduled expiration according to 5.1 herein, Franchisee or its affiliate will, at Company's election, lease the Business Location to Company or its affiliate at market rent for a term of two (2) years.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee or its affiliate owns the approved business location, and the franchise agreement is terminated either due to the franchisee's breach or by the franchisee without a valid cause before its scheduled expiration, Byrider has the option to lease the business location.
Specifically, Byrider can elect to lease the location from the franchisee or their affiliate at market rent for a term of two years. This clause ensures that Byrider can maintain control over the location and continue operations, even if the original franchisee is no longer operating the business.
This condition is important for prospective franchisees to consider, especially if they plan to purchase the real estate for their Byrider location through a related entity. It means that in certain termination scenarios, they could be compelled to lease the property to Byrider, potentially impacting their long-term real estate investment strategy.