Does Byrider make any representations regarding a franchisee's ability to procure required licenses or permits?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.8 No Representation Regarding Licenses/Permits. No representation or statement has been made by the Company, or by its officers, directors, shareholders, employees or agents and relied upon by the Franchisee regarding the Franchisee's ability to procure any required license or permit that may be necessary to the offering of one or more of the services contemplated to be offered by the business franchised hereby.
- 2.9 The Franchisee's Advisors. The Franchisee has been advised to consult with its own advisors with respect to the legal, financial and other aspects of this Agreement, the business franchised hereby, and the prospects for that business. The Franchisee has either consulted with such advisors or has voluntarily declined to do so.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider makes no guarantees regarding a franchisee's ability to obtain the necessary licenses and permits to operate their franchise. The FDD explicitly states that franchisees cannot rely on any representation made by Byrider, its officers, directors, shareholders, employees, or agents concerning the franchisee's ability to procure required licenses or permits. This places the onus entirely on the franchisee to ensure they can meet all local and state requirements for operating a Byrider franchise.
This disclaimer is a standard practice in franchising. It underscores the importance of independent due diligence on the part of the prospective franchisee. Franchisees are responsible for understanding and complying with all applicable laws and regulations, which can vary significantly by location. Failing to secure the necessary licenses and permits could prevent a franchisee from opening their Byrider location or lead to legal issues down the line.
Prospective Byrider franchisees should consult with legal and business advisors to fully understand the licensing and permitting requirements in their desired location. This includes researching local zoning laws, business licenses, and any specific permits required for selling and financing used vehicles. Byrider advises franchisees to consult with their own advisors regarding the legal, financial, and other aspects of the Franchise Agreement and the business.