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What happens if there are inconsistencies between this rider and the Byrider Franchise Agreement?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

ons 19 and 20 of the Illinois Franchise Disclosure Act.

No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Company. This provision supersedes any other term of any document executed in connection with the franchise.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.

"FRANCHISEE" "COMPANY"
«Name_of_Franchisee», «Entity_Type» BYRIDER FRANCHISING PARTNERS, LLC
«Signatory»«Signatory_Title» By: Michael J. Onda, Chief Executive Officer

RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MARYLAND

THIS RIDER is made and entered into by and between BYRIDER FRANCHISING
PARTNERS, LLC, a Delaware limited liability company whose address it 12802 Hamilton
Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and
a(n) whose principal business address is
(the "Franchisee").
1.
BACKGROUND. The Company and the Franchisee are parties to that certain
Franchise Agreement dated, 20 (the "Franchise Agreement").
This Rider is annexed to and forms an integral part of the Franchise Agreement. This Rider
supersedes any inconsistent or conflicting provisions of the Franchise Agreement.
Terms not
otherwise defined in this Rider have the meanings as defined in the Franchise Agreement. This
Rider is being signed because (a) the Franchisee is a resident of the State of Maryland; or (b)
Franchisee's Business is or will be operated in the State of Maryland; or (c) the offer to sell is
made in the State of Maryland; or (d) the offer to buy is accepted in the State of Maryland.
2.
MARYLAND FRANCHISE REGISTRATION AND DISCLOSURE LAW.
The following is added as a new Section 2.12 of the Franchise Agreement:
2.12
MARYLAND FRANCHISE REGISTRATION AND DISCLOSURE
LAW. All representations requiring the Franchisee to assent to a release, estoppel
or waiver of liability are not intended to nor shall they act as a release, estoppel or
waiver of any liability incurred under the Maryland Franchise Registration and
Disclosure Law.
  1. RELEASES. The following is added to the end of Sections 5.2(F), 6.1(E), and 14.3(C)(6) of the Franchise Agreement:

However, any release required as a condition of renewal, sale and/or assignment/transfer will not apply to any claims or liability arising under the Maryland Franchise Registration and Disclosure Law.

  1. INSOLVENCY. The following sentence is added to the end of Section 16.2(A)(4) of the Franchise Agreement:

This Section 16.2(A)(4) may not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.).

  1. ARBITRATION. The following paragraph is added to the end of Section 19.1 of the Franchise Agreement:

A Maryland franchise regulation states that it is an unfair or deceptive practice to require the Franchisee to waive its right to file a lawsuit in Maryland claiming a

violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.

  1. GOVERNING LAW. The following paragraph is added to the end of Section 20.5 of the Franchise Agreement:

Notwithstanding the foregoing, (1) any state law regulating the offer or sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless its jurisdictional requirements are met independently without reference to this section, and (2) Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. CHOICE OF FORUM. The following language is added to the end of Section 20.6 of the Franchise Agreement:

The Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. LIMITATION OF ACTIONS. The following sentence is added to the end of Section 20.9 of the Franchise Agreement:

Franchise must bring any claims arising under the Maryland Franchise Registration and Disclosure Law within 3 years after Company grants the Franchisee the franchise.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.

"FRANCHISEE" "COMPANY"
«Name_of_Franchisee», «Entity_Type» BYRIDER FRANCHISING PARTNERS, LLC
«Signatory»«Signatory_Title» By: Michael J. Onda, Chief Executive Officer

RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MINNESOTA

THIS RIDER is made and entered into by and between BYRIDER FRANCHISING
PARTNERS, LLC, a Delaware limited liability company whose address it 12802 Hamilton
Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and
a(n) whose principal business address is
(the "Franchisee").
1.
BACKGROUND.

Source: Item 23 — Receipts (FDD pages 88–335)

What This Means (2025 FDD)

According to the 2025 Byrider Franchise Disclosure Document, several riders are added to the franchise agreement, and these riders take precedence over any conflicting terms in the original agreement. Specifically, the language in the Illinois, Maryland, Minnesota and New York riders will supersede the original franchise agreement in case of inconsistencies.

For franchisees in Illinois, the rider specifies that, with the exception of the U.S. Federal Arbitration Act and other federal laws, the laws of Illinois will govern the agreement. This means that Illinois franchisees will have their franchise agreements interpreted and enforced under Illinois law, regardless of what the original agreement states.

For franchisees in Maryland, the rider adds a section clarifying that no representation in the agreement should act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This ensures that Maryland franchisees retain their rights and protections under Maryland law.

For franchisees in New York, the rider ensures that the rights enjoyed by franchisees and any causes of action arising in their favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain. This protects the franchisee's rights under New York law.

For franchisees in Minnesota, the rider ensures that no condition, stipulations or provision in the Franchise Agreement will in any way abrogate or reduce any of your rights under the Minnesota Franchises Law, including, if applicable, the right to submit matters to the jurisdiction of the courts of Minnesota.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.