If the Byrider franchisee is a trust, what is the liability of the trustees or beneficiaries signing the agreement?

According to the 2025 Byrider Franchise Disclosure Document, if the franchisee is a trust, each trustee or beneficiary signing the Franchise Agreement will be jointly or severally liable for all the obligations and duties of the franchisee. This means that Byrider can pursue any one or all of the signing trustees or beneficiaries for the full amount of any debt or obligation the franchise has under the agreement.

This clause is significant because it extends personal liability to individuals who might otherwise have been shielded by the trust structure. Trustees and beneficiaries should understand that signing the agreement means they are personally guaranteeing the franchise's performance. This is a standard practice in franchising, as franchisors typically seek to ensure that there are individuals with personal assets at stake to motivate proper management and compliance with the franchise agreement.

Prospective Byrider franchisees operating as a trust should carefully consider the implications of this clause and seek legal counsel to fully understand their potential liabilities. They should also discuss with Byrider what specific obligations and duties are covered under the agreement to assess the potential financial risks involved. This will allow trustees and beneficiaries to make informed decisions about their involvement in the franchise and to protect their personal assets accordingly.