What happens if a Byrider franchisee's software agreement is terminated by Byrider Franchising Partners for breach of its provisions?
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, if a franchisee's software agreement is terminated by Byrider Franchising Partners due to a breach of its provisions, it constitutes a "cause" for termination of the franchise agreement. This means Byrider can terminate the franchise agreement if the franchisee's software agreement is terminated for breach.
This is considered a default that cannot be cured, meaning the franchisee does not have an opportunity to fix the breach to avoid termination. Other examples of defaults that cannot be cured include failing to open the business within one year, failing to complete required initial training, and providing materially false information to Byrider Franchising Partners.
This provision highlights the importance of adhering to the terms of the software agreement. Franchisees should carefully review the software agreement and ensure they understand their obligations to avoid potential termination of their franchise agreement. This also underscores the interconnectedness of the various agreements within the Byrider franchise system, where a breach in one agreement can trigger consequences in another.