What happens if a Byrider franchisee loses the right to occupy the business location?

According to Byrider's 2025 Franchise Disclosure Document, if a franchisee loses the right to occupy their business location due to a breach of the lease or other reasons, Byrider has grounds to terminate the franchise agreement, unless the franchisee secures an alternative location that Byrider approves. This is covered under Section 16.2A(4) of the franchise agreement.

Upon termination of the agreement, the franchisee has several obligations. They must promptly pay all outstanding amounts to Byrider, return the operations manual and any confidential materials including the Byrider Computer Software, and maintain the confidentiality of proprietary information. The franchisee must also immediately stop using Byrider's trademarks and make alterations to the business location to differentiate it from a Byrider business.

Additionally, within 30 days of termination, the franchisee must cancel all Byrider telephone listings and advertising, and transfer any internet domain names or assumed names containing Byrider's marks to the company. The franchisee must also comply with all non-compete covenants outlined in the agreement. Byrider also has the right to recover any costs, including attorney's fees, associated with the termination of the agreement.

Furthermore, if the franchisee or an affiliate owns the business location and the agreement is terminated due to the franchisee's breach, Byrider has the option to enter into a lease for the location at fair market value for a term of two years. This could present a significant challenge for a franchisee who loses their location, as Byrider could potentially take over the site.