For what purpose is the Byrider license provided to the Licensee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to all the terms and conditions of this Agreement and the Franchise Agreement, Licensor hereby grants to Licensee, and Licensee hereby accepts, a nonexclusive, indivisible, non-transferable license to access and use the Licensed System in a manner consistent with the terms of this Agreement.
Such license is provided for the sole purpose of allowing Licensee access to the functions of the Licensed System necessary to obtain the Services for the sole use of Licensee's automobile sales business pursuant to and in accordance with the Franchise Agreement.
It is the responsibility of the Licensee alone to ensure that the Licensed System fulfills the individual requirements and goals of the Licensee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the license granted to the franchisee is specifically for accessing and utilizing the functions of the Licensed System. This access is deemed necessary for the franchisee to obtain services related to their "buy-here-pay-here" automobile sales business, as outlined in the Franchise Agreement. These services include data processing, generation of retail installment sales contracts from input data, and monitoring of receivables and collection productivity.
This license is nonexclusive, indivisible, and nontransferable, meaning the franchisee cannot grant these rights to another party. The franchisee is responsible for ensuring that the Licensed System meets their individual requirements and goals. The license is strictly for the franchisee's internal automobile sales business purposes and not for the benefit of any third parties.
Byrider retains the right to modify the Licensed System components at its discretion. The franchisee must use equipment and procedures similar to those designated by Byrider to access the system and can only use the system for business conducted at approved locations. The franchisee is prohibited from using the system for data processing services or as a service bureau for third parties and must comply with all applicable laws and regulations when using the system.