If a Byrider franchisee or its affiliate owns the approved Business Location, what happens upon termination of the agreement due to the franchisee's breach?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee or its affiliate owns the approved Business Location, Franchisee agrees that upon termination of this Agreement by Company due to Franchisee's breach or termination by Franchisee without cause prior to the scheduled expiration according to 5.1 herein, Franchisee or its affiliate will, at Company's election, lease the Business Location to Company or its affiliate at market rent for a term of two (2) years.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a Byrider franchisee or an affiliate owns the approved business location, and the franchise agreement is terminated by Byrider due to the franchisee's breach or by the franchisee without cause before the agreement's scheduled expiration, Byrider has the option to lease the business location.
Byrider or its affiliate can elect to lease the location at market rent for a term of two years. This clause ensures that Byrider can maintain operations in that location even after a franchisee's departure, which is particularly important for maintaining brand presence and customer service continuity.
This condition is applicable when the termination occurs either because Byrider terminates the agreement due to the franchisee's breach or if the franchisee terminates the agreement without a valid reason before its natural expiration, as defined in section 5.1 of the franchise agreement. This provision protects Byrider's interests by allowing them to secure the location, which is critical for the ongoing operation of the business. Franchisees should be aware of this obligation, especially if they or their affiliates own the property where the Byrider business is located.