factual

What is the Licensee allowed to do with the Licensed System under the Byrider agreement?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

icensee data processing and other services related to the "buy-here-pay-here" automobile sales and collection management systems, particularly generation of specific retail installment sales and security contracts from input data and monitoring of receivables and collection productivity by Licensee (hereinafter referred to as "Services"). Licensor shall have the right to suspend or limit, in whole or in part, Licensee's access to the Services upon ten (10) days written notice to Licensee if any amounts due Licensor are more than thirty (30) days past due or as otherwise provided in the Franchise Agreement.

    1. License. Subject to all the terms and conditions of this Agreement and the Franchise Agreement, Licensor hereby grants to Licensee, and Licensee hereby accepts, a nonexclusive, indivisible, non-transferable license to access and use the Licensed System in a manner consistent with the terms of this Agreement. Such license is provided for the sole purpose of allowing Licensee access to the functions of the Licensed System necessary to obtain the Services for the sole use of Licensee's automobile sales business pursuant to and in accordance with the Franchise Agreement. It is the responsibility of the Licensee alone to ensure that the Licensed System fulfills the individual requirements and goals of the Licensee. This license extends only to use for Licensee's own internal automobile sales business purposes and not for any direct or indirect benefit of third parties. Licensee agrees to access the Licensed System only by means of the equipment and procedures substantially similar to those designated in Appendix A attached hereto and incorporated herein by reference. Licensee agrees to use the Licensed System solely for the purposes of business initiated and conducted at the location specified in Appendix C, and additional locations may not be added without Licensor's approval. Licensee shall not use or access the Licensed System in connection with the performance of data processing services or as a service bureau for any third person. Licensee further agrees that it shall not use the Licensed System or transmit data to, through, or from the Hosting Facility in any manner that is contrary to any law or regulation of the United States or any state or country where Licensee is located. Licensee shall, at all times, use the Licensed System and access the Hosting Facility as directed by the Licensor from time to time. The components of the Licensed System may be changed from time to time at the Licensor's sole discretion.
    1. Transmission of Data and Use of Services. Except as may be provided in this Agreement, Licensee shall be solely responsible for communications and transmission of any and all data and information of any kind between Licensee and the Licensed System/Hosting Facility (hereinafter "Customer Data"). Licensee assumes exclusive responsibility for the consequences of any instructions Licensee may give Licensor, for Licensee's failure to properly access the Licensed System in the manner prescribed by Licensor, and for Licensee's failure to supply accurate, timely, and/or complete input information. All network connectivity to and from the Licensed System and Hosting Facility is the responsibility of the Licensee and must be by means of secured network connections and controlled devices. Network configuration and access, anti-virus tools, firewalls, VPN tools, wireless access points, and possibly other means must be installed, maintained, and activated by the Licensee as directed by the Licensor. Licensee is responsible for choosing its network carrier, associated costs, and service levels. Licensor reserves the right to immediately suspend Licensee's network connectivity and use of the Licensed System if the Licensor believes in good faith that the Licensee poses a threat to the Licensed System or Licensor due to viruses, worms, hacking, or any other situation that presents reasonable dangers. Upon a showing that Licensee's use no longer poses such a threat, then Licensor shall reactivate Licensee's use of the Licensed System.
    1. Undertakings of Licensor. In accordance with the terms of this Agreement, Licensor agrees to:
    • a) Make its commercially reasonable efforts to maintain the Licensed System in operation twenty-four (24) hours a day, seven (7) days a week except for periods of scheduled maintenance;
  • b) Use its commercially reasonable efforts to provide the Services in a manner that protects information transmitted by Licensor from unauthorized interception, modification, or replication;

Source: Item 23 — Receipts (FDD pages 88–335)

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, the licensee is granted a nonexclusive, indivisible, and non-transferable license to access and use the Licensed System. This license is specifically for accessing the functions necessary to obtain services for the franchisee's automobile sales business, in accordance with the Franchise Agreement. The licensee is responsible for ensuring that the Licensed System meets their individual requirements and goals. This license is only for the franchisee's internal automobile sales business purposes and not for the benefit of third parties. The licensee must use equipment and procedures similar to those outlined in Appendix A and use the Licensed System solely for business at the location specified in Appendix C, with additional locations requiring Byrider's approval.

The Byrider franchisee cannot use the Licensed System for data processing services or as a service bureau for any third person. They must not use the system or transmit data in any manner that violates laws or regulations of the United States or any other country where the franchisee is located. The franchisee is required to use the Licensed System and access the Hosting Facility as directed by Byrider.

The franchisee is prohibited from making copies of the Licensed Software or Licensed Documentation, except for the number of copies necessary for its use of the Licensed System. Any copies of the Licensed Documentation must be labeled with a specific copyright notice and must not be made available to anyone other than employees or agents who are bound to maintain the information in confidence. The franchisee cannot remove, hide, or disable any of Byrider's copyright notices on the Licensed System.

If the franchisee uses the Licensed System in a way that hasn't been approved in writing by Byrider, or if a third party's activities cause damages due to the franchisee's unapproved use of the system, the franchisee will be liable for direct and consequential damages to Byrider and any affected franchisee. Upon termination of the agreement, the franchisee must immediately stop using the Licensed System. Byrider retains ownership of the Licensed System and any improvements made to it.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.