What happens if a Byrider franchisee fails to pay federal or state taxes when due?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee fails to pay federal or state income, service, sales, or other taxes when due on the operation of their Byrider business, Byrider has grounds for immediate termination of the franchise agreement. However, this is only applicable if the franchisee is not in good faith contesting their liability for these taxes.
Specifically, Byrider must provide the franchisee with written notice of the failure to pay taxes. The franchisee then has thirty days to correct the failure. If the franchisee does not resolve the tax issue within this 30-day period, Byrider has the right to terminate the franchise agreement immediately.
This clause protects Byrider from potential legal and financial repercussions associated with a franchisee's failure to meet their tax obligations. It also ensures that Byrider franchisees operate their businesses in compliance with all applicable laws and regulations. Franchisees should ensure timely tax payments to avoid potential termination of their franchise agreement.