Is Byrider liable for any loss or damage arising from the plans or specifications for the business location?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company shall not be liable for any loss or damage arising from the plans or specifications for the Business Location by reason of its approval of plans and specifications, or otherwise.
The Franchisee acknowledges and agrees that the Company's engaging in such site selection activities, the Company's suggestions, the exercise of its rights of approval provided herein, or the exercise of its right to lease said Business Location and sublease the same to the Franchisee and to derive profit therefrom, shall not give rise to any liability of the Company with regard to the viability of any location(s) selected, proposed or approved by the Company, nor shall the same be construed as any express or implied representation, warranty or guarantee by the Company of the suitability for or viability, prospects or profitability of any such location for a Business.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider is not liable for any loss or damage related to the plans or specifications of the business location. This holds true regardless of whether the loss or damage arises from Byrider's approval of the plans and specifications or from any other cause. This means that franchisees bear the full responsibility for ensuring the accuracy, suitability, and compliance of the location's plans and specifications.
This lack of liability extends to Byrider's involvement in site selection activities, suggestions made during the process, and the exercise of its approval rights. Even if Byrider leases the business location and subleases it to the franchisee for profit, this does not create any liability for the viability of the location. The franchisee acknowledges that Byrider's actions should not be interpreted as a representation, warranty, or guarantee regarding the suitability, prospects, or profitability of the location.
Prospective franchisees should carefully consider this allocation of risk. It is crucial to conduct thorough due diligence on the proposed location, including independent assessments of the plans and specifications, to ensure they meet all requirements and are suitable for the intended business operations. Engaging qualified professionals to review the plans and assess the location's viability is highly recommended to mitigate potential losses or damages. Franchisees should also secure appropriate insurance coverage to protect against unforeseen issues related to the business location.