What monetary obligations must a Byrider franchisee satisfy to obtain a Successor Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
All monetary obligations owed by the Franchisee to the Company have been satisfied prior to such Successor Franchise Agreement and have been met, when due, throughout the Term or Franchisee has cured any noncompliance within 5 business days of delivery of written notice.
In the event the Franchisee is not in compliance, the Company agrees to provide written notice to the Franchisee and the Franchisee will be able to cure within 5 business days of receipt of notice of its non-compliance.
In the event of Franchisee cures its non-compliance within such period, Franchisee will be deemed to have met its obligation under 5.2C;
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee must satisfy all monetary obligations to the company to obtain a Successor Franchise Agreement. Specifically, all outstanding payments must be settled before the new agreement is granted, and all payments must have been made on time throughout the original term.
Byrider provides a cure period if a franchisee is not in compliance with these monetary obligations. The franchisee will receive written notice of non-compliance and has 5 business days from the receipt of the notice to correct the issue. If the franchisee successfully addresses the non-compliance within this 5-day period, they are considered to have met the monetary obligations for the Successor Franchise Agreement.
This requirement ensures that Byrider franchisees seeking to renew their agreements are in good financial standing with the company. It is a fairly standard practice in franchising to ensure all accounts are settled before a renewal is granted. Franchisees should maintain diligent records of their payments and address any discrepancies promptly to ensure eligibility for a Successor Franchise Agreement.