If a Byrider franchisee has a default under the Software Agreement, can Byrider terminate the franchise agreement immediately?

According to the 2025 Byrider Franchise Disclosure Document, Byrider has the right to terminate the franchise agreement immediately under certain conditions related to the Software Agreement. Specifically, if Byrider sends a notice of default under the Software Agreement due to the franchisee's breach of its provisions, and that default is not timely cured, Byrider can terminate the franchise agreement immediately. This is one of the grounds for termination without a cure period.

This means that a Byrider franchisee's failure to comply with the terms of the Software Agreement can have severe consequences, potentially leading to the immediate termination of their franchise. The franchisee must ensure strict adherence to the Software Agreement to avoid such a situation. The Software Agreement is attached as Exhibit D to the Franchise Agreement.

This clause highlights the importance of understanding and complying with all agreements associated with the franchise, not just the primary franchise agreement. For a prospective franchisee, this underscores the need to carefully review the Software Agreement and understand its obligations, as a breach can trigger immediate termination of the franchise. It is also important to note that Byrider's technology system is made up of Byrider proprietary software, off-the-shelf software, hardware, Software as a Service (SaaS) platforms from third party providers as well as public cloud-based platforms, and a dealer management system with integrated mandatory Customer Relations Management provided at no additional cost to the franchisee.