What obligations of the 'Franchisee' under the Franchise Agreement does the Finance Entity assume in the Byrider agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
AGREEMENT
FOR AND IN CONSIDERATION of the foregoing Recitals (which are incorporated in and made a part of this Agreement), the covenants contained herein, and other valuable consideration, receipt and sufficiency of which are acknowledged, the parties agree as follows:
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- Our Consent. We hereby consent to your conducting the Financing Activities through the Finance Entity during the Term of the Franchise Agreement, provided that the Finance Entity is and remains either your wholly owned subsidiary or your Affiliate whose owners, and the percentages of the ownership held by each, mirror your ownership structure.
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- Acceptance and Assumption of Franchise Agreement. The Finance Entity hereby joins in, accepts and assumes all of the obligations of the "Franchisee" under the Franchise Agreement as if it were a signatory to the Franchise Agreement. The parties agree that all references in the Franchise Agreement to "Franchisee" shall be deemed to be references to both the Finance Entity and you, jointly and severally, and that the Finance Entity's rights with respect to the Financing Activities derive solely from the Franchise Agreement. The Finance Entity and you agree that, unless we provide our prior written consent (which we may withhold or condition at our discretion), the sole business of the Finance Entity will be, and that it will engage only in,
ascribed to them in the Franchise Agreement.
the Financing Activities as they relate to the Business and, further, that it will engage in the Financing Activities in strict compliance with the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Finance Entity assumes all obligations of the franchisee under the Franchise Agreement. Byrider consents to the franchisee conducting financing activities through a Finance Entity, provided that the Finance Entity remains either a wholly-owned subsidiary or an affiliate with a mirroring ownership structure to the franchisee.
The Finance Entity joins in, accepts, and assumes all obligations of the franchisee as if it were a signatory to the Franchise Agreement. All references to "Franchisee" in the Franchise Agreement are deemed to refer to both the Finance Entity and the franchisee, jointly and severally. The Finance Entity's rights with respect to financing activities are derived solely from the Franchise Agreement.
The Finance Entity and the franchisee agree that the Finance Entity's sole business will be to engage only in financing activities as they relate to the Byrider business and that it will conduct these activities in strict compliance with the Franchise Agreement. This arrangement requires careful coordination between the franchisee and the Finance Entity to ensure all obligations are met, as both entities are jointly and severally liable for any breaches of the Franchise Agreement.