What is the purpose of the Required Lease Addendum for a Byrider franchise?

According to the 2025 Byrider Franchise Disclosure Document, the Required Lease Addendum ensures that the lease agreement between the franchisee (as the tenant) and the landlord incorporates specific protections and rights for Byrider. This addendum, as outlined in Exhibit F, modifies the standard lease to protect Byrider's interests in several key ways.

Primarily, the addendum ensures Byrider's consent is required for any lease termination, modification, or surrender of the premises. This prevents a franchisee and landlord from making changes that could negatively impact Byrider's operations or brand. The landlord must also provide Byrider with a copy of the fully executed lease. The addendum also addresses the scenario where a franchisee's rights to operate a Byrider business are tied to the franchise agreement, ensuring that Byrider can step in under certain conditions.

Specifically, the landlord consents to the collateral assignment of the lease to Byrider, allowing Byrider to secure the franchisee's obligations. It also allows Byrider to take over the lease if the franchise agreement is terminated due to the franchisee's breach or if the franchisee terminates without cause. Furthermore, the lease can be assigned to another Byrider franchisee without needing the landlord's further consent. This ensures Byrider can maintain a location's operation under its brand even if the original franchisee exits the business.

Additionally, the addendum establishes Byrider as a third-party beneficiary of the lease, granting Byrider the right to enforce the lease terms if it holds a collateral assignment. The landlord acknowledges Byrider's right to assume management of the business under certain circumstances, such as abandonment or failure to cure defaults, and allows Byrider to enter the premises to remove Byrider signage upon termination of the lease or franchise agreement. This comprehensive approach protects Byrider's brand, operational continuity, and financial interests related to the franchise location.