How long does Byrider have to exercise its right of first refusal for a Control Assignment?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2 Right of First Refusal. Within thirty (30) days after the Company's receipt of the bona fide written offer and all other information the Company requests (the "Review Period"), the Company shall have the right, by written notice to the Franchisee, to cause the Control Assignment to be made to itself or to its nominee upon the terms and conditions contained in the written offer except that the Company shall be allowed to pay the equivalent cash value of any consideration specified in the notice, and Franchisee will be required to grant the customary warranties and representations to the Company.
The failure of the Company to deliver such notice within the Review Period shall constitute a waiver of its right of first refusal.
In the event the Control Assignment is to Franchisee's (or the transferring owner's) family members, then this Article XV shall not apply.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee decides to pursue a Control Assignment, Byrider has a right of first refusal. Byrider has thirty (30) days after receiving a bona fide written offer from the franchisee, along with any other requested information, to exercise this right. This 30-day period is referred to as the "Review Period." To exercise its right, Byrider must provide written notice to the franchisee within this Review Period, indicating that the Control Assignment should be made to Byrider itself or its nominee. If Byrider does not deliver such notice within the Review Period, it is considered a waiver of their right of first refusal.
This right of first refusal allows Byrider to maintain control over who becomes a franchisee within their system. It ensures that Byrider has the opportunity to purchase the franchise back or assign it to a party of their choosing, maintaining brand consistency and operational standards. The terms and conditions of Byrider's acquisition must mirror those in the franchisee's offer, although Byrider can pay the equivalent cash value for any non-cash consideration.
However, this right of first refusal does not apply if the Control Assignment is to the franchisee's family members. If Byrider chooses not to exercise its right of first refusal, it still has the option to object to the assignment or impose conditions on it, provided they notify the franchisee within the same Review Period. If the terms of the Control Assignment materially change after Byrider declines to exercise its right of first refusal, the changed terms are considered a new offer, and Byrider once again has the right of first refusal.