What happens if the Byrider franchisee does not cure non-compliance within the allotted time?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
hereunder or upon any property used in the Franchisee's Business, and is not discharged within thirty (30) days of such levy;
- (6) The Franchisee or Designated Manager, directors, officers or majority stockholder are convicted of, or plead guilty or no contest to, a felony or other criminal misconduct which is directly related to the operation of the Franchisee's Business; or
- (7) A termination of any other franchise agreement between Franchisee (or any of its affiliates) and Company.
B. Termination After Opportunity to Cure.
(1) The Company shall have the right to terminate this Agreement immediately if the Franchisee fails to pay the Company (or their affiliates) any amounts due and does not cure the failure within ten (10) business days after written notice of the failure to the Franchisee.
(2) The Company shall have the right to terminate this Agreement immediately if the Franchisee fails to comply with this Agreement in any of the following manners and does not cure the failure within thirty (30) days after written notice of the failure to the Franchisee:
a) The Franchisee voluntarily or otherwise abandons the Franchisee's Business by failing to operate it for a period of three (3) consecutive business days or more during the Term, unless the Franchisee's Business has been closed for a purpose approved by the Company;
b) The Franchisee fails to purchase or maintain the insurance required by this Agreement or fails to reimburse the Company for purchasing of such insurance on the Franchisee's behalf;
c) The Franchisee interferes with the Company's right to inspect the Franchisee's Business or observe its operation, as provided in Section 6.10 of this Agreement;
d) The Franchisee (or any of its owners) makes any unauthorized use or disclosure of any part of the Manual or any other Confidential Information;
e) The Franchisee's or Franchisee's owner's assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities, or the Franchisee or any of the Franchisee's owners otherwise violate any such law, ordinance, or regulation;
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the consequences for a franchisee's failure to cure non-compliance within the given timeframe vary depending on the nature of the breach. If a Byrider franchisee fails to pay amounts due to Byrider or its affiliates and does not correct this within ten business days after written notice, Byrider has the right to immediately terminate the agreement.
For other failures to comply with the agreement, Byrider must provide the franchisee with written notice and an opportunity to cure the failure within 30 days. Examples of such failures include abandoning the business for three or more consecutive days without approval, failing to maintain required insurance, or failing to assign the agreement in the event of death or disability. If the franchisee does not correct the failure within this 30-day period, Byrider has the right to immediately terminate the agreement.
Furthermore, if a Byrider franchisee fails three consecutive Compliance Audits, Byrider has the right to terminate the agreement. Except for immediate terminations related to non-payment or specific breaches, terminations are generally effective 60 days after the notice of termination, allowing the franchisee a "Wind Down Period" to continue operating under the terms of the agreement while ceasing operations. During this wind-down period, the franchisee must still adhere to the terms of the agreement.