What recourse does Byrider have if a franchisee breaches the terms related to proprietary and confidential information?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ure thereof by the Company or which, at the time of disclosure by the Company to the Franchisee, had become a part of the public domain through publication or communication by others without Franchisee's fault or involvement; or which after disclosure to the Franchisee by the Company, becomes a part of the public domain through publication or communication by others without Franchisee's fault or involvement.
- C. Due to the special and unique nature of the proprietary and Confidential Information, the Marks, and the Manual, the Franchisee hereby agrees that the Company shall be entitled to immediate equitable remedies including, but not limited to, restraining orders and injunctive relief in order to safeguard any proprietary, confidential, unique and special information of the Company and that money damages alone would be an insufficient remedy with which to compensate the Company for any breach of the terms of Article XVIII and Sections 6.3 and 7.16 hereof. Furthermore, the Franchisee agrees that all employees and agents of the Franchisee having
access to the confidential and proprietary information of the Company shall be required to execute confidential information covenants in a form acceptable to the Company.
- 7.17 Service Center Operations. The Franchisee must operate a Service Center at the Business Location. The Franchisee may only provide repair service for vehicles purchased from Businesses, unless the Company approves in writing for the Franchisee to service the general public. Notwithstanding the foregoing, the Franchisee will not be required to operate a Service Center at the Business Location so long as the Franchisee or its affiliate operates a Service Center at another Business under a franchise agreement with the Company and the Company determines in its sole discretion that such Service Center is located within a reasonable distance to service customers of the Franchisee.
- 7.18 Information Security. The Franchisee must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, government-issued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider can seek immediate equitable remedies if a franchisee breaches the terms of Article XVIII and Sections 6.3 and 7.16, which pertain to proprietary and confidential information. These remedies include restraining orders and injunctive relief to protect Byrider's confidential information, as monetary damages alone may not adequately compensate Byrider for such a breach. This means Byrider can take immediate legal action to prevent further disclosure or misuse of its confidential information by a franchisee.
Byrider also requires all franchisee employees and agents with access to confidential information to sign confidentiality covenants in a form acceptable to Byrider. This ensures that not only the franchisee but also their staff are legally bound to protect Byrider's proprietary information. Furthermore, Byrider emphasizes that any violation of the non-compete covenants within the agreement would cause immediate and irreparable harm, entitling Byrider to seek an injunction. The franchisee agrees not to contest any application for such an injunction, acknowledging that a violation of these covenants can be presumed to involve the unlawful use of Byrider's confidential information, know-how, methods, and procedures.
Moreover, the existence of any claims the franchisee may have against Byrider does not serve as a defense against Byrider's enforcement of the non-compete covenants. Upon termination or expiration of the franchise agreement, the franchisee must maintain the confidentiality of all proprietary and confidential information provided by Byrider. This obligation survives the termination of the agreement, ensuring continued protection of Byrider's sensitive information even after the franchise relationship ends. These measures collectively provide Byrider with strong legal and contractual means to safeguard its confidential information and proprietary assets.