What is the procedure a Byrider franchisee must follow before terminating the franchise agreement due to a breach by the company?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchisee is in full compliance with this Agreement and the Company breaches any material provision, term or condition, Franchisee may terminate this Agreement as provided herein.
- B. Procedure.
The Franchisee shall not have any right to terminate this Agreement or commence an action against the Company for injunctive relief, violation of any state, federal or common law, unless and until:
(1) Written notice setting forth the alleged breach in detail has been delivered to the Company by the Franchisee; and
(2) The Company fails to correct, or diligently make all reasonable efforts to correct, the alleged breach within thirty (30) days after receipt of such written notice.
C. Required Notice-Waiver of Breach.
If the Franchisee fails to give the Company written notice of an alleged breach of this Agreement within one (1) year from the date that the Franchisee has knowledge of the facts which constitute a breach by the Company, then the alleged breach shall be deemed to be condoned, approved and waived by the Franchisee and the alleged breach or violation shall not be deemed to be a breach or violation of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee who believes Byrider has breached the franchise agreement must follow a specific procedure before terminating the agreement or taking legal action. The franchisee must first provide Byrider with a written notice detailing the alleged breach. This notice must clearly explain the specific actions or failures that constitute the breach, giving Byrider a clear understanding of the issue.
After receiving the written notice, Byrider has a 30-day period to correct the alleged breach or demonstrate that they are diligently making reasonable efforts to correct it. This gives Byrider an opportunity to address the franchisee's concerns and potentially resolve the issue without termination. If Byrider fails to correct the breach or make sufficient efforts within this 30-day period, the franchisee can then proceed with terminating the agreement or pursuing legal remedies.
Furthermore, the Byrider franchisee must provide notice of the breach to Byrider within one year of learning of the facts that constitute the breach. Failure to provide notice within this timeframe means that the franchisee will have effectively waived their right to claim Byrider breached the agreement. This requirement emphasizes the importance of franchisees acting promptly to protect their rights and address any concerns they may have regarding Byrider's compliance with the franchise agreement.