What happens if Byrider terminates the agreement due to the franchisee's breach?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
son/company affiliated with the Franchisee) under any other agreement, including, but not limited to, any other franchise agreement, between the Company (or any of its affiliates) and the Franchisee (or any person/company affiliated with the Franchisee), and any default by the Franchisee (or any person/company affiliated with the Franchisee) under any obligation to the Company (or any of its affiliates) may be regarded as a default under this Agreement.
ARTICLE XVII
OBLIGATIONS UPON TERMINATION
17.1 Obligations. In the event of the termination or expiration of this Agreement, whether by reason of default, lapse of time or other cause, the Franchisee shall: (A) promptly pay all amounts owed to the Company; (B) promptly return to the Company the Manual and other confidential materials including, without limitation, all the BYRIDER Computer Software; (C) maintain confidentiality of all proprietary and Confidential Information furnished by the Company; (D) immediately cease using any of the Marks except as provided for herein; (E) immediately make all alterations to the building facilities and exterior signs at the Business Location to distinguish them from the appearance and identity of a Business; if the Franchisee shall fail or refuse to make or cause such changes to be made, the Company, without prejudice to its other rights and remedies, may enter upon the Business Location, forcibly if necessary, without being guilty of trespass or any other tort, and make such changes at the Franchisee's expense except as provided for herein; (F) within thirty (30) days after the termination or expiration of this Agreement, cancel all Byrider telephone listings, numbers and directory advertising, and, if required by the Company, direct the transfer of the same to the Company or on its order; (G) take such actions as may be necessary or desirable to assign to the Company or the Company's designee any Internet domain names, assumed name, rights or equivalent registration which contain the Marks, including, without limitation, any slogans used by the Company, within thirty (30) days after the termination or expiration of this Agreement; (H) comply with all covenants contained in Article XVIII herein; (I) pay all costs, including attorneys' fees, incurred by the Company in terminating this Agreement.
Further, if the Franchisee or an affiliate of Franchisee is the titleholder of the Business Location and if the termination of this Agreement is due to Franchisee's breach prior to the scheduled expiration of this Agreement according to 5.1 herein, the Company shall have the right, but not the obligation, to enter into a lease for the Business Location at a fair market value rental for a term of two (2) years.
- 17.2 Termination of Access to BYRIDER Computer Software. Upon termination or expiration of this Agreement, the Software Agreement shall also concurrently expire or terminate. Upon such termination or expiration, the Company shall not be obligated to provide the Franchisee with access to the BYRIDER Computer Software or provide any services with respect thereto, except that the Company shall promptly make available to Franchisee (in a commercially reasonable media and form or format, as Company shall determine) any and all information needed to permit Franchisee (or its assignee) to collect its receivables and otherwise engage in an orderly transfer, transition or wind down of Franchisee's Business.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, if Byrider terminates the franchise agreement due to the franchisee's breach, several obligations and consequences arise. The franchisee must promptly pay all amounts owed to Byrider. The franchisee must also promptly return the Manual, BYRIDER Computer Software, and other confidential materials to Byrider and maintain the confidentiality of proprietary information. The franchisee must immediately cease using any of Byrider's Marks, and make alterations to the Business Location to distinguish it from a Byrider Business.
Within thirty days after termination, the franchisee must cancel all Byrider telephone listings and advertising, and transfer any relevant internet domain names or assumed names to Byrider. The franchisee must also comply with all covenants not to compete and pay all costs, including attorneys' fees, incurred by Byrider in terminating the agreement.
Additionally, if the franchisee or an affiliate holds the title to the Business Location, Byrider has the right, but not the obligation, to enter into a lease for the location at fair market value for a term of two years. Upon termination, the franchisee will no longer have access to the BYRIDER Computer Software, but Byrider will provide the franchisee with information needed to collect receivables and wind down the business. Byrider also has the right to eliminate any or all of the wind down period and effectuate the termination immediately upon written notice to Franchisee if the Franchisee impairs the goodwill and reputation of Byrider.
These obligations are typical in franchise agreements to protect the franchisor's brand and system. Franchisees should be aware of these post-termination responsibilities and the potential costs associated with them.