Can ownership rights to the Proprietary Software ever transfer from Byrider Franchising Partners to the franchisee or a third party?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Proprietary Computer Software and Starter Kit. You must license Byrider Franchising Partners' Proprietary Computer Software from Byrider Franchising Partners and enter into a Software Services and User Agreement (see Exhibit E attached to the Franchise Agreement) with Byrider Franchising Partners for ongoing service and support to the Proprietary Software and all other components of the technology system. Byrider Franchising Partners does not provide lease packages for its Proprietary Software but may provide you with a list of third parties that offer lease packages for the entire technology system as described in Item 11. Any financing you arrange for the purchase or lease of the technology system may not contain terms that encumber the Proprietary Software in any way. Under no circumstances will the ownership rights to the Proprietary Software change from Byrider Franchising Partners to you or to a third party.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 36–40)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to license Byrider Franchising Partners' Proprietary Computer Software and enter into a Software Services and User Agreement for ongoing service and support. Byrider does not offer lease packages for the software itself but may provide a list of third parties that offer lease packages for the entire technology system.
Importantly, any financing arranged by the franchisee for the technology system must not encumber the Proprietary Software in any way. The FDD is very clear that under no circumstances will the ownership rights to the Proprietary Software transfer from Byrider Franchising Partners to the franchisee or any third party. This means that while franchisees use the software to operate their business, Byrider retains full ownership and control over it.
This arrangement is typical in franchising, where franchisors often maintain ownership of key proprietary assets like software to ensure consistency and quality across the franchise system. For a prospective Byrider franchisee, this means they will not have the option to own or independently modify the software used in their business. Instead, they will rely on Byrider for updates, maintenance, and support of the Proprietary Software.