What is the purpose of this rider in relation to the Byrider Franchise Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER (this "Rider") is made and entered into by and between BYRIDER FRANCHISING PARTNERS, LLC, a Delaware limited liability company whose address it 12802 Hamilton Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and a(n) whose principal business address is (the "Franchisee"). |
|---|
| 1. |
| BACKGROUND. The Company and Franchisee are parties to that certain |
| Franchise |
| Agreement |
| dated |
| , |
| 20 |
| (the |
| "Franchise |
| Agreement"). This Rider is annexed to and forms an integral part of the Franchise Agreement. |
| This Rider supersedes any inconsistent or conflicting provisions of the Franchise Agreement. This |
| Rider is being signed because (a) an offer to sell is made or accepted in the State of Rhode Island; |
| or (b) an offer to buy is accepted in the State of Rhode Island; or (c) Franchise is a resident of the |
| State of Rhode Island and Franchisee's Business is or will be operated in the State of Rhode Island. |
| 2. |
| GOVERNING LAW. The following paragraph is added to the end of Section 20.5 |
| ("Governing Law") of the Franchise Agreement: |
| Notwithstanding the foregoing, (1) any state law regulating the offer or sale of |
| franchises or governing the relationship of a franchisor and its franchisee will not |
| apply unless its jurisdictional requirements are met independently without |
| reference to this section, (2) the enforceability of those provisions of this |
| Agreement which relate to restrictions on Franchisee and its owners' competitive |
| activities will be governed by the laws of the state in which the Franchisee's |
| Business is located; and (3) to the extent required by applicable law, Rhode Island |
| law will apply to claims arising under the Rhode Island Franchise Investment Act. |
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the purpose of the rider is to amend the Franchise Agreement to account for specific state laws. The rider is an integral part of the Franchise Agreement and supersedes any conflicting provisions within the original agreement.
The rider is signed when an offer to sell or buy a franchise is made or accepted in a specific state, or if the franchisee is a resident of or will operate their business in that state. This ensures that the Byrider franchise agreement complies with the franchise laws of that particular state.
For example, a rider might be added if the offer to sell or buy is made in North Dakota, or if the franchisee is domiciled in North Dakota, in which case a provision is added to the end of specific sections of the Franchise Agreement stating that any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the North Dakota Franchise Investment law. Similarly, if the offer to sell or buy is made in New York, the rider ensures that all rights enjoyed by the franchisee under Article 33 of the General Business Law of the State of New York remain intact.