What information regarding ownership changes must a Byrider franchisee provide to Byrider Franchising Partners, LLC?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| A. Franchisee: «Name_of_Franchisee», «Entity_Type» | |||||
|---|---|---|---|---|---|
| Stockholder/Member | % Ownership | Stockholder/Member | % Ownership | ||
| 1) | % | 6) | % | ||
| 2) | % | 7) | % | ||
| 3) | % | 8) | % | ||
| 4) | % | 9) | % | ||
| 5) | B. Co-Franchisee: «CoFranchisee» | % | 10) | % | |
| 1) | % | 6) | % | ||
| 2) | % | 7) | % | ||
| 3) | % | 8) | % | ||
| 4) | % | 9) | % | ||
| 5) | % | 10) | % | ||
| 3. | That I will notify Byrider Franchising Partners, LLC, attn. Legal Dept., prior to any changes of ownership. Further affiant saith not. DATED this «Day» day of «Month», «Year». STATE OF COUNTY OF, SS: Subscribed and sworn to before me this day of, 20 My Commission Expires: County of Residence: | Affiant, «Signatory» | Notary Public |
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, a Byrider franchisee must notify Byrider Franchising Partners, LLC, attn. Legal Dept., prior to any changes of ownership. This requirement is documented in the Affidavit of Ownership, which the franchisee must complete. The affidavit requires the franchisee to disclose the current stockholders or members for both the Franchisee and any Co-Franchisee, including their respective percentage of ownership.
This notification requirement ensures that Byrider is kept informed about the ownership structure of its franchises. This allows Byrider to maintain accurate records and assess whether any proposed ownership changes could affect the franchisee's ability to meet its obligations under the Franchise Agreement. For example, Byrider may want to evaluate the financial stability and operational experience of any new owners to ensure they are capable of running the franchise effectively.
By requiring advance notification, Byrider retains some control over who can own and operate a Byrider franchise. This is a common practice in franchising, as franchisors want to protect their brand and ensure that all franchisees meet certain standards. The franchisee's failure to provide timely notification of ownership changes could potentially be a breach of the Franchise Agreement, leading to penalties or even termination of the franchise. Prospective franchisees should carefully review the Franchise Agreement and related exhibits to fully understand their obligations regarding ownership changes.