What release of claims is required from the Franchisee and its owners when assigning a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
e executes the then current franchise agreement and other forms the Company is then requiring of new franchisees, which may contain rights and obligations which are materially different than those contained in this Agreement, except that the Franchisee will not be required to pay an Initial Franchise Fee;
- F. The Franchisee executes and delivers to the Company a written general release (except as may be limited by law) of all claims and demands against the Company, its officers, directors, representatives and affiliates provided, however, that all rights enjoyed by the Franchisee mandated by applicable state law shall remain in force and the Company's indemnification obligations under Section 11.3.B shall remain in force for a period of two (2) years after the expiration of this Agreement; and
- G.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, when a franchisee seeks to renew their franchise agreement, they must execute and deliver to Byrider a written general release of all claims and demands against Byrider, its officers, directors, representatives, and affiliates. This release is subject to limitations by law. Specifically, all rights enjoyed by the franchisee mandated by applicable state law will remain in force. Additionally, Byrider's indemnification obligations under Section 11.3.B of the franchise agreement will remain in force for a period of two years after the expiration of the agreement.
This requirement means that as a condition of renewing their franchise, a franchisee must waive their right to pursue most legal claims against Byrider. The exception is for rights and protections that cannot be waived under state law. This is a significant point for potential franchisees to consider, as it could limit their legal recourse against Byrider in the future.
The franchisee must sign the agreements and the release within thirty days after delivery or by the expiration of the term, otherwise it will be deemed that the franchisee has elected not to obtain such successor franchise. Franchisees should carefully review the implications of this release with a legal professional before signing, to fully understand what rights they are giving up and what protections remain.