If more than one person executes the Franchise Agreement as the Franchisee for Byrider, what is their liability?

According to Byrider's 2025 Franchise Disclosure Document, if more than one person signs the Franchise Agreement as the franchisee, each person is jointly and severally liable for all obligations and duties. This means that Byrider can pursue any one of the franchisees for the full amount of any debt or obligation, regardless of their individual contribution or involvement.

This has significant implications for prospective franchisees. If you are entering into a Byrider franchise agreement with partners, each partner is fully responsible for the entire franchise's obligations. This includes financial obligations, adherence to operational standards, and any other responsibilities outlined in the agreement. A default by one partner can result in all partners being held liable.

Furthermore, if the Franchisee is a corporation, limited liability company, or other entity, each of Franchisee's owners with 50% or more direct or indirect interest in Franchisee must execute a guaranty in the form the Company prescribes undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between Franchisee and the Company; provided that if no one individual owns 50% or more interest in Franchisee, individuals who together own at least 50% ownership interest in Franchisee must execute a guaranty. Each person with ownership interest in Franchisee who does not execute a guaranty must execute a joinder in the form the Company prescribes undertaking personally to be bound by the covenants restricting transfers of interest in Franchisee and confidentiality and noncompetition covenants applicable to all owners of Franchisee under this Agreement.

This clause is standard in many franchise agreements to protect the franchisor. Prospective Byrider franchisees should carefully consider the risks associated with joint and several liability and seek legal counsel to fully understand their obligations and potential exposure.