If a Byrider franchisee signs an Area Development Agreement, can Byrider Franchising Partners license other Byrider franchises within their protected territory?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
essly prohibited under the Franchise Agreement.
If you sign an Area Development Agreement and comply with its terms and conditions, you will be granted a protected territory and Byrider Franchising Partners cannot license other Byrider franchises or open company-owned Byrider Businesses within your protected territory. If you enter into an Area Development Agreement, your protected territory will be comprised of the counties or cities that you have agreed to develop (see Exhibit C). Continuation of your territorial rights under the Area Development Agreement does not depend upon achievement of a certain sales quota, market penetration level, or other contingency. However, we may modify or terminate your rights only if you fail to meet your development schedule or otherwise default under the Area Development Agreement. Byrider Franchising Partners will retain all rights similar to those provided in the previous paragraph with respect to the protected territory granted under the Area Development Agreement. Byrider Franchising Partners must approve the location of any future/additional Byrider Business that you intend to develop pursuant to the Area Development Agreement. Byrider Franchising Partners' thencurrent standards for sites and territories will apply.
Although Byrider Franchising Partners has no plans to do so, it reserves the right to operate or offer franchises in businesses that sell goods or services similar to or competitive with yours, and Byrider Franchising Partners may offer those goods and services under different trade names or trademarks. And, although Byrider Franchising Partners has no plans to do so, it may establish other franchised or company-owned outlets, which may compete with your location. Byrider Franchising Partners will not compensate you if it exercises these rights.
Except as described above, you have no other options, rights of first refusal or similar rights.
ITEM 13
TRADEMARKS
Byrider Franchising Partners' principal trademarks are "CNAC CarNow Acceptance Company", "CNAC" and "Byrider". Upon signing the Franchise Agreement, you will have the right to use certain of Byrider Franchising Partners' trademarks, service marks and other commercial symbols in operating the Business (the "Marks").
Source: Item 12 — (FDD pages 50–51)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee signs an Area Development Agreement and complies with its terms, Byrider Franchising Partners cannot license other Byrider franchises or open company-owned Byrider businesses within the franchisee's protected territory. The protected territory under an Area Development Agreement will consist of the counties or cities that the franchisee has agreed to develop.
Continuation of these territorial rights does not depend on achieving specific sales quotas, market penetration levels, or other similar conditions. However, Byrider may modify or terminate these rights if the franchisee fails to meet the development schedule or otherwise defaults under the Area Development Agreement. Even with an Area Development Agreement, Byrider Franchising Partners retains certain rights, and the franchisee must obtain Byrider Franchising Partners' approval for the location of any future Byrider Business developed under the agreement, adhering to Byrider Franchising Partners' current standards for sites and territories.
It is important to note that even with a protected territory under an Area Development Agreement, Byrider Franchising Partners retains rights to add new programs, products and/or services to the Business at any time; establish, operate and franchise a business offering and selling products and/or services which maybe the same or similar to the products and services offered by the Business under any trade names, trademarks, service marks or logos other than the Marks; use or license the use of the Marks in business other than the Business; acquire the assets or ownership interests of one or more businesses providing products and services similar to those provided by the Business, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating, including within your Protected Territory; be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at the Business, or by another business; and engage in all other activities not expressly prohibited under the Franchise Agreement.