If a Byrider franchisee or their designated manager is convicted of a felony, is this grounds for immediate termination?

According to the 2025 Byrider Franchise Disclosure Document, a felony conviction of the franchisee, designated manager, directors, officers, or majority stockholder can lead to the termination of the franchise agreement. However, the termination is not immediate.

Specifically, Byrider can terminate the franchise agreement if the franchisee or designated manager, directors, officers, or majority stockholder are convicted of, or plead guilty or no contest to, a felony or other criminal misconduct which is directly related to the operation of the franchisee's business. This means that the felony or criminal misconduct must have a direct connection to how the Byrider franchise is run for Byrider to have grounds for termination.

This clause protects Byrider from potential damage to its brand and reputation that could arise from criminal activity of its franchisees or their key personnel. It also ensures that individuals in positions of authority within the franchise operation meet a certain standard of legal and ethical conduct. For a prospective franchisee, this highlights the importance of maintaining a clean criminal record and ensuring that their designated manager and other key personnel do as well, to avoid the risk of losing the franchise.