What happens if a Byrider franchisee defaults under any other agreement with Byrider Franchising Partners or its affiliates, which does not afford a cure?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Description | Franchise | C | |
| Provision | Agreement or | Summary | |
| other | |||
| agreement | |||
| h. | "Cause" defined – | Articles 16.1, | Failure to open the Business within |
| defaults which cannot | 16.2 and 16.4 | 1 year; failure to complete required | |
| be cured | initial training prior to opening for | ||
| See also Area | business; supplying Byrider | ||
| Development | Franchising Partners with materially | ||
| Agreement, | false, misleading, incomplete, or | ||
| Section 4 | inaccurate information; your | ||
| software agreement is terminated | |||
| by Byrider Franchising Partners for | |||
| breach of its provisions; you make | |||
| or attempt to make any transfer in | |||
| violation of Article 14 of the | |||
| Franchise Agreement, you make an | |||
| assignment for the benefit of | |||
| creditors or are deemed insolvent or | |||
| unable to pay your debts generally | |||
| as they become due; the business | |||
| or Business Location is seized, | |||
| taken over, or foreclosed by a | |||
| government official, creditor, | |||
| lienholder, or lessor and final | |||
| judgment is unsatisfied for thirty | |||
| days without bond or appeal or a | |||
| levy of execution has been made | |||
| upon the licenses granted or upon | |||
| any property used in the Business | |||
| and is not discharged within five | |||
| days of such levy; you or any of | |||
| your managers, directors, officers or | |||
| majority stockholder are convicted | |||
| of, or plead guilty or no contest to, a | |||
| felony or other criminal misconduct | |||
| directly related to the operation of | |||
| the Business. You default under | |||
| any other agreement with Byrider | |||
| Franchising Partners or its affiliates, | |||
| which does not afford you a cure | |||
| period. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–63)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, defaulting under any agreement with Byrider Franchising Partners or its affiliates that does not offer a cure period is considered a 'cause' for termination. This means Byrider can terminate the franchise agreement if the franchisee fails to meet obligations under another agreement without an opportunity to correct the issue.
This provision is significant for prospective Byrider franchisees because it broadens the scope of potential defaults beyond just the franchise agreement itself. Any agreement a franchisee has with Byrider or its affiliates could trigger termination if breached and if that agreement lacks a cure provision. This could include financing agreements, software licenses, or other related contracts.
Franchisees should carefully review all agreements with Byrider and its affiliates to understand the default terms and whether a cure period is provided. Understanding these terms is crucial for managing risk and ensuring compliance to avoid potential franchise termination. This is a stricter standard than many franchises, where termination is usually tied to violations of the franchise agreement itself, after an opportunity to cure.