What lease term will Byrider require if the franchisee or its affiliate must lease the business location to Byrider?

According to Byrider's 2025 Franchise Disclosure Document, if a franchisee or its affiliate owns the approved business location, Byrider has the option to lease the location for a term of two years under specific conditions. This condition is triggered if Byrider terminates the Franchise Agreement due to the franchisee's breach or if the franchisee terminates the agreement without cause before its scheduled expiration, as outlined in section 5.1 of the agreement. The lease will be at market rent.

This clause protects Byrider's interests by ensuring continued access to the business location, which is critical for maintaining operations and brand presence. It also applies if the franchisee or an affiliate of the franchisee is the titleholder of the Business Location and if the termination of this Agreement is due to Franchisee's breach prior to the scheduled expiration of this Agreement according to 5.1 herein, the Company shall have the right, but not the obligation, to enter into a lease for the Business Location at a fair market value rental for a term of two (2) years.

For a prospective franchisee, this means that owning the business location comes with the obligation to lease it to Byrider under certain termination scenarios. Franchisees should consider this potential obligation and its financial implications, including the market rental rate and the impact on their assets, before deciding to purchase the business location. It is advisable to seek legal and financial counsel to fully understand the implications of this clause.