What is the maximum time allowed for winding-up activities after the Byrider franchise agreement terminates?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2 After Termination. With the exception of activities usual and customary to the winding-up or transfer of a business (e.g. collection of receivables, transitional assistance to a transferee, etc.) not to exceed 90 days, which activities Company hereby affirms that Franchisee shall have the right in which to engage, Franchisee agrees that for a period of one (1) year immediately following the expiration or termination of this Agreement or any Successor Franchise Agreement, neither it nor any of its owners (or their immediate family members) will (i) engage, participate or assist in any way in the operation of or (ii) have any direct or indirect interest (whether as an owner, investor, partner, director, officer, employee, consultant, representative, agent, landlord, or otherwise) in, any Competitive Business that is located within a twenty-five (25) mile radius of Franchisee's Business or within a ten (10) mile radius of any Business in operation or under construction as of the date of expiration or termination of this Agreement. The one (1) year post-Term noncompete period in this Article 18.2 shall begin on the date Franchisee complies with Article 18.2.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee is allowed a maximum of 90 days to engage in activities related to winding up or transferring the business after the termination of the franchise agreement. These activities include the collection of receivables and providing transitional assistance to a new owner.
However, after this 90-day period, the franchisee faces certain restrictions. For one year following the termination or expiration of the agreement, the franchisee and their owners (including immediate family members) are prohibited from engaging in or having any interest in a Competitive Business. This restriction applies within a 25-mile radius of the former franchise location or within a 10-mile radius of any other Byrider location that is either in operation or under construction at the time of termination.
This non-compete period begins once the franchisee has complied with all obligations outlined in Article 18.2 of the franchise agreement. This means that a former franchisee must carefully manage the winding-up process to ensure compliance with both the 90-day limit for business transition activities and the subsequent one-year non-compete clause.