What laws govern the Byrider Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
equiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act. To the extent required by applicable law, Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act."
VIRGINIA
The following language is added to the end of the "Summary" section of Item 17(e), entitled "Termination by Byrider Franchising Partners without cause":
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN ILLINOIS
| THIS RIDER (this "Rider") is made and entered into by and between BYRIDER |
|---|
| FRANCHISING PARTNERS, LLC, a Delaware limited liability company whose address it |
| 12802 Hamilton Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and a(n) |
| whose |
| principal |
| business |
| address |
| is |
| (the |
| "Franchisee"). |
| 1. |
| BACKGROUND. The Company and Franchisee are parties to that certain |
| Franchise |
| Agreement |
| dated |
| , |
| 20 |
| (the |
| "Franchise |
| Agreement"). This Rider is annexed to and forms an integral part of the Franchise Agreement. |
| This Rider supersedes any inconsistent or conflicting provisions of the Franchise Agreement. |
| Terms not otherwise defined in this Rider have the meanings as defined in the Franchise |
| Agreement. This Rider is being signed because (a) the offer of the franchise is made or accepted |
| in the State of Illinois and Franchisee's Business is or will be located in the State of Illinois; and/or |
| (b) Franchisee is domiciled in Illinois. |
| 2. |
| ILLINOIS FRANCHISE DISCLOSURE ACT. The following is added to the |
| end of the Franchise Agreement: |
| Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the |
| laws of the State of Illinois will govern this Agreement. |
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the laws governing the Franchise Agreement vary by state. Generally, the Franchise Agreement requires application of Indiana law, but this may not be enforceable under California law. For franchisees in Illinois, the laws of Illinois (except for the U.S. Federal Arbitration Act and other federal laws) will govern the agreement if the offer of the franchise is made or accepted in Illinois, or if the franchisee is domiciled in Illinois.
For franchisees in North Dakota, any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the North Dakota Franchise Investment Law. Additionally, covenants not to compete are generally considered unenforceable in North Dakota, but Byrider will enforce them to the maximum extent the law allows. The FDD also notes that Minnesota law might prohibit Byrider from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring franchisees to consent to liquidated damages, termination penalties or judgment notes.
Prospective franchisees should be aware that these state-specific provisions are designed to protect their rights and ensure compliance with local laws. Byrider acknowledges that certain provisions in the standard Franchise Agreement may not be enforceable in every state due to conflicting state laws. Franchisees should consult with legal counsel to understand the specific laws that apply to their franchise location and how those laws may affect their rights and obligations under the Franchise Agreement.