If Byrider Franchising Partners, LLC assigns the Lease to another franchisee, is Byrider Franchising Partners, LLC released from liability under the Lease?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord, Tenant and Franchisor agree and acknowledge that simultaneously with such assignment pursuant to the immediately preceding sentence, Franchisor shall be released from all liability under the Lease or otherwise accruing after the date of such assignment (in the event Franchisor is acting as the assignor under such assignment), but neither Tenant nor any other franchisee shall be afforded such release in the event Tenant/such franchisee is the assignor unless otherwise agreed by Landlord.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if Byrider Franchising Partners, LLC, acting as the Franchisor, assigns a lease to another franchisee, Byrider is released from all liability under the lease. This release from liability is effective from the date of the assignment forward. However, this release from liability does not extend to the tenant or any other franchisee if they are the assignor, unless the landlord agrees otherwise.
This provision is beneficial for Byrider as it limits their long-term financial obligations related to the lease if they transfer it to another franchisee. It clarifies the responsibilities of each party involved in the assignment of the lease, ensuring that Byrider is not held responsible for any liabilities that may arise after the assignment has taken place, provided they are the assignor.
For a prospective Byrider franchisee, this clause offers some assurance that Byrider will not remain liable for lease obligations after assigning the lease to another franchisee. However, franchisees should be aware that if they assign the lease, they will not be released from liability unless the landlord specifically agrees to it. This highlights the importance of carefully reviewing the lease agreement and understanding the conditions under which liability can be transferred or released.