How late must payments be before Byrider can suspend or limit a Licensee's access to the Services?

According to Byrider's 2025 Franchise Disclosure Document, Byrider can suspend or limit a licensee's access to services if any amounts due to Byrider are more than 30 days past due. Byrider will provide a 10-day written notice before suspending or limiting access. This is in accordance with the terms and conditions outlined in the franchise agreement.

For a prospective Byrider franchisee, this means that maintaining timely payments to Byrider is crucial to ensure uninterrupted access to the Licensed System and the Services. The Licensed System is essential for data processing and other services related to the "buy-here-pay-here" automobile sales and collection management systems. Any disruption could impact the franchisee's ability to generate retail installment sales contracts, monitor receivables, and manage collection productivity.

The requirement of a 10-day written notice provides a franchisee with a brief window to rectify any overdue payments before access to the services is suspended or limited. Franchisees should take this notice seriously and act promptly to resolve any payment issues to avoid potential business disruptions. It is also important to note that Byrider may have other provisions in the Franchise Agreement that could trigger suspension or limitation of services, so franchisees should be familiar with the entire agreement.

This type of clause is relatively standard in franchise agreements, as franchisors need to protect their interests and ensure that franchisees meet their financial obligations. Franchisees should maintain open communication with Byrider regarding any potential payment issues to explore possible solutions and avoid service interruptions.