What happens if Byrider terminates the franchise agreement because the franchisee failed to complete the initial training program?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
itial Training Program to Company's satisfaction within thirty (30) days post-hire. One new Designated Manager per year may attend the Initial Training Program without charge. Franchisee shall be responsible for all travel costs, room and board and employees' salaries incurred in connection with the new Designated Manager's attendance to such training.
- E. Unsatisfactory Completion. If Company determines that the Designated Manager is unable to satisfactorily complete the Initial Training Program, Company shall have the right to terminate this Agreement in the manner provided herein. Upon such termination, Franchisee and its owners shall execute a general release pursuant to which Franchisee and its owners will release the Company from any claims or causes of action the Franchisee may have under or pursuant to this Agreement and Franchisee shall have no further right, title or interest in the Business, the Marks or the System.
- F. Installation of Technology System. Company will grant Franchisee access to Byrider proprietary software and third-party technology services prior to the opening of business.
- 6.2 Specifications for Building, Equipment, Signs and Supplies. Before commencement of the construction at the Business Location, the Company shall deliver to the Franchisee specifications for the building, equipment, furnishings, decor, layout and signs required to open and operate the Business. The Company shall also provide the Franchisee with lists of approved suppliers and sources of supply.
6.3 Confidential Operating Manual.
- A. The Company shall provide access to Company's Confidential Operating Manual (together with all supplements to or revisions of, herein the "Manual") for use during the Term. The online Manual is provided on the Company's intranet website. All periodic modifications to the Manual are made to the online copy only, and Franchisee agrees to view the website monthly for modifications. The Company will send electronic notice of modifications. Franchisee agrees that the Manual and any updates to the Manual are part of this Agreement as if fully set forth within its text. Franchisee acknowledges that Company's periodic modification of the Manual (including, without limitation, changes to the hardware and software required for the Company's technology system), which may accommodate regional and/or local variations, may obligate Franchisee to invest additional capital in the Business Location and/or incur higher operating costs.
- B.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider has the right to terminate the franchise agreement if the designated manager is unable to satisfactorily complete the Initial Training Program. This decision is based on Byrider's judgment, made in good faith, regarding the franchisee's ability to manage the business effectively. This termination can occur before the franchisee's business even opens to the public.
Upon termination due to unsatisfactory completion of the training program, the franchisee and their owners must execute a general release, which releases Byrider from any claims or causes of action the franchisee may have against them under the agreement. Consequently, the franchisee loses all rights, title, and interest in the Byrider business, the associated trademarks, and the Byrider system.
If Byrider terminates the agreement before the business opens and the franchisee has already entered into a lease or purchase agreement for the business location or has placed purchase orders for equipment, Byrider has the option to require the franchisee to assign their rights under these agreements to Byrider or its designee. If Byrider chooses to exercise this option and the assignments are made, Byrider or its designee will assume the franchisee's obligations under those leases and purchase orders. Once the agreement is terminated, it becomes null and void, and neither party has further obligations to the other, except for those obligations that naturally survive the termination.