If a Byrider franchisee wants to proceed with a Control Assignment, what documentation must they provide to the company?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
All proposed transferees must fill out and submit to the Company its then current form of franchise application.
If the proposed transfer is of this Agreement, the Franchisee's Business or a controlling ownership interest in the Franchisee or one of its owners, or is one of a series of transfers (regardless of time period over which these transfers take place) which in the aggregate transfer this Agreement or a controlling ownership interest in the
Franchisee (or one of its owners) (each, a "Control Assignment"), then all of the following conditions must be met before or concurrently with the effective date of the transfer:
(1) The purchaser, transferee, lessee or assignee (the "Assignee") (or the principal officers, shareholders, members, or directors of the Assignee in the case where the Assignee is a legal entity) has the aptitude, skills, qualifications, credit and financial resources necessary, in the Company's judgment, to conduct the Franchisee's Business and to fulfill the Assignee's obligations to the Company;
(2) As of the date of any such Control Assignment, the Franchisee shall have fully complied with all its obligations hereunder or under any other agreement with the Company, including, without limitation, (i) paying all monetary obligations owed to the Company, its affiliates, and any third party vendors, (ii) submitting all required reports and statements, and (iii) complying with all provisions of this Agreement or any other agreement with the Company or its affiliates during both the sixty (60) day period before the Franchisee requested the Company's consent and the period between the Franchisee's request for consent and the effective date of the Assignment;
(3) Neither the Assignee nor its owners (if the Assignee is a legal entity) or affiliates have an ownership interest (direct or indirect) in or perform services for a Competitive Business (defined in Section 18.1);
(4) The Business Location's landlord, if any, allows the Franchisee to transfer the Business Location's lease to Assignee, Assignee assumes all of the obligations of the Franchisee under the lease for the Business Location and the Franchisee is not in default with respect to any of its obligations under said lease;
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee plans a Control Assignment, the proposed transferee must complete and submit Byrider's current franchise application form to the company.
Additionally, before or concurrently with the transfer's effective date, several conditions must be met. The Assignee (the purchaser, transferee, lessee, or assignee) must demonstrate the necessary aptitude, skills, qualifications, credit, and financial resources to manage the Byrider business and fulfill their obligations to the company. The company will evaluate these factors to ensure the Assignee is capable of running the franchise successfully.
Furthermore, as of the Control Assignment date, the franchisee must have fully complied with all obligations under their agreements with Byrider. This includes paying all monetary obligations to Byrider, its affiliates, and third-party vendors, submitting all required reports and statements, and adhering to all provisions of the Franchise Agreement or any other agreement with Byrider or its affiliates during the 60-day period before requesting consent and the period between the request and the assignment's effective date. The Business Location's landlord, if any, must allow the Franchisee to transfer the Business Location's lease to Assignee, Assignee assumes all of the obligations of the Franchisee under the lease for the Business Location and the Franchisee is not in default with respect to any of its obligations under said lease.
These requirements ensure that the new franchisee is well-prepared and financially stable, and that the existing franchisee has met all prior obligations, thus protecting Byrider's interests and maintaining the integrity of the franchise system.