What law's rights are retained by the Byrider franchisee, notwithstanding the releases provision?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
However, 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.
- The following is added to the end of the "Summary" section of Item 17(s), entitled "Non-competition covenants after the franchise is terminated or expires":
Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota; however, Byrider Franchising Partners and you will enforce the covenants to the maximum extent the law allows.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees in certain states retain specific rights despite any general release agreements they may sign. In Maryland, any release required as a condition of renewal, sale, or transfer will not apply to claims or liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they still maintain their rights to pursue claims related to franchise law violations in Maryland.
Similarly, in New York, franchisees retain all rights and causes of action arising from Article 33 of the General Business Law of the State of New York and its regulations. This ensures that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) are satisfied, protecting the franchisee's rights under New York law.
In North Dakota, any release required for renewal or transfer will not apply to the extent prohibited by the North Dakota Franchise Investment Law. This provision ensures that franchisees in North Dakota do not waive rights protected by the state's franchise investment laws when signing a general release. These stipulations are crucial for prospective franchisees to understand, as they highlight the specific legal protections that remain in place despite any general releases they may be asked to sign during the franchise term.