Is the Byrider license granted to the Licensee transferable?

According to the 2025 Byrider Franchise Disclosure Document, the software license granted to franchisees is non-transferable. Specifically, the document states that the license to access and use the Licensed System is "non-exclusive, indivisible, non-transferable". This means a franchisee cannot transfer their rights to use Byrider's proprietary software and systems to another party.

This restriction has significant implications for a potential Byrider franchisee. It ensures that only authorized franchisees, who have been vetted and trained by Byrider, can utilize the Licensed System. This protects the integrity and confidentiality of the system, as well as the data it contains. It also means that if a franchisee sells their Byrider business, the new owner will need to obtain their own separate license agreement with Byrider to continue using the system.

Furthermore, the Software Services and User Agreement states that the license extends only to use for the franchisee's own internal automobile sales business purposes and not for any direct or indirect benefit of third parties. The franchisee also agrees to access the Licensed System only by means of the equipment and procedures designated by Byrider. These stipulations reinforce the non-transferable nature of the license and highlight Byrider's control over how its Licensed System is used.

In the event a franchisee attempts to transfer or use the licensed system in a manner contrary to the agreement, Byrider has the right to seek injunctive relief, acknowledging that other remedies may be inadequate. This underscores the importance Byrider places on maintaining control over its Licensed System and preventing unauthorized use or transfer.