Does Byrider make any warranties regarding the retail installment sales and security contracts created by the licensee?

According to Byrider's 2025 Franchise Disclosure Document, Byrider makes no warranties or representations regarding the retail installment sales and security contracts that a licensee creates using Byrider's licensed system. Byrider explicitly states it offers no assurance as to the validity, accuracy, usefulness, or other characteristics of these contracts.

This disclaimer means that Byrider franchisees are solely responsible for ensuring that the retail installment sales and security contracts they generate using the licensed system are legally sound, accurate, and compliant with all applicable laws and regulations. Franchisees bear the risk of any issues arising from these contracts.

This lack of warranty is a significant consideration for potential Byrider franchisees. It highlights the importance of franchisees having a strong understanding of consumer finance laws and regulations, or retaining legal counsel to ensure compliance. Franchisees should also implement robust internal controls to verify the accuracy and validity of the contracts they create. Byrider's provision of the Licensed System does not absolve the franchisee of responsibility for the contracts generated by the system.

Furthermore, the FDD states that the licensee is responsible for indemnifying Byrider against any claims arising from the use of the Licensed System, including those related to the retail installment sales and security contracts, unless the claim arises solely from Byrider's negligence or willful misconduct. This further emphasizes the franchisee's responsibility and potential liability in this area.