What must individuals with ownership interest in a Byrider franchisee, who do not execute a guaranty, execute?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, individuals with ownership interest in a Byrider franchise who do not execute a guaranty must execute a joinder. This joinder is in a form prescribed by Byrider.
The joinder legally binds these individuals to specific covenants within the Franchise Agreement. Specifically, they are bound by the covenants restricting transfers of interest in the franchisee entity. This means they cannot freely sell or transfer their ownership stake without Byrider's approval.
Additionally, the joinder binds them to confidentiality and noncompetition covenants. This prevents them from disclosing Byrider's confidential information and from competing with Byrider during and after their involvement with the franchise. This is a standard practice in franchising to protect the brand and trade secrets. Byrider requires this joinder to ensure that all individuals with an ownership stake are legally obligated to uphold these key provisions, even if they do not have a full guaranty.