Can the Byrider Licensee use the Licensed System for the direct or indirect benefit of third parties?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ment 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.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the license to use the Licensed System extends only to the franchisee's own internal automobile sales business purposes. Byrider franchisees are explicitly prohibited from using the Licensed System for any direct or indirect benefit of third parties. This restriction ensures that the software and system are used solely for the operation of the franchised Byrider business.
The agreement specifies that franchisees cannot use the Licensed System in connection with data processing services or as a service bureau for any third person. This prevents franchisees from offering services to other businesses using the Byrider system. The franchisee is responsible for ensuring the Licensed System meets their individual business requirements and goals within their own operations.
Unauthorized use of the Licensed System can result in liability for damages. The franchisee is liable to Byrider and any affected franchisee for damages caused by any unapproved use of the Licensed System or damages resulting from a third party's activities due to the franchisee's unapproved use of the system. Byrider retains the right to seek injunctive relief if a franchisee attempts to use the Licensed System in a manner that violates the franchise agreement.