factual

What are the Releasing Parties releasing the Company Parties from in the Byrider franchise agreement?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York.

  1. GOVERNING LAW; CHOICE OF FORUM. The following statement is added to the end of Sections 20.5 ("Governing Law") and Section 20.6 ("Choice of Forum") of the Franchise Agreement:

This section shall not be considered a waiver of any right conferred upon Franchisee by the provisions of Article 33 of the New York State General Business Law, as amended, and the regulations issued thereunder.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.

"FRANCHISEE" "COMPANY"
«Name_of_Franchisee», «Entity_Type» BYRIDER FRANCHISING PARTNERS, LLC
«Signatory»«Signatory_Title» By: Michael J. Onda, Chief Executive Officer

RIDER TO THE FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA

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 the 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 in the State of North Dakota; or (b) an offer to buy is accepted in the State of North Dakota; or (c) if the Franchisee are domiciled in the State of North Dakota, Franchisee's Business is or will be operated in the State of North Dakota.
2. Law. RELEASES. The following provision is added to the end of Section 5.2.F., Section 6.1.E. and Section 14.3.C.(6) of the Franchise Agreement: However, 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
    1. RESTRICTIVE COVENANTS. Covenants restricting competition are subject to Section 9-08-06, N.D.C.C., which limits the Company's ability to restrict Franchisee's activity after the Franchise Agreement has ended. In North Dakota, covenants not to compete upon termination or expiration of the Franchise Agreement are generally unenforceable except in certain instances as provided by law; however, the Company and the Franchisee will enforce the covenants to the maximum extent the law allows.
    1. ARBITRATION. The following provision is added to the end of Section 19.1 of the Franchise Agreement:

Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law (unless such a requirement is preempted by the Federal Arbitration Act), arbitration shall be held at a site to which the Company and the Franchisee mutually agree.

  1. GOVERNING LAW. The following paragraph is added to the end 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, and (2) the enforceability of those provisions of this Agreement which relate to restrictions on the Franchisee and its owners' competitive activities will be governed by the laws of the state in which Franchisee's Business is located.

  1. CHOICE OF FORUM. The following provision is added to the end of Section 20.6 ("Choice of Forum") of the Franchise Agreement:

Notwithstanding the foregoing, to the extent required by North Dakota Franchise Investment Law, and subject to the parties' arbitration obligations, the Franchisee may bring an action in North Dakota for claims arising under the North Dakota Franchise Investment Law.

    1. LIQUIDATED DAMAGES AND TERMINATION PENALTIES. In North Dakota, any provision in the Franchise Agreement that requires Franchisees to consent to liquidated damages or termination penalties is void.
    1. WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL. Section 20.7 and Section 20.8 of the Franchise Agreement are deleted in their entirety.
    1. LIMITATION OF CLAIMS. In North Dakota, the statute of limitations under North Dakota law applies.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.

Source: Item 23 — Receipts (FDD pages 88–335)

What This Means (2025 FDD)

Based on the 2025 Byrider Franchise Disclosure Document, several riders address releases required within the franchise agreement, particularly concerning specific state laws. For franchisees in North Dakota, 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. This means that Byrider cannot enforce a release that would violate the franchisee's rights under North Dakota law during renewal or transfer of the franchise.

Similarly, for franchisees in New York, all rights and causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York and its regulations remain in effect. This ensures that Byrider franchisees in New York do not waive their rights under New York's General Business Law, specifically Sections 687(4) and 687(5), which protect franchisees.

For franchisees in Maryland, all representations requiring the franchisee to assent to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This provision clarifies that Byrider cannot use standard release clauses to circumvent the protections provided by Maryland's franchise laws. These stipulations ensure that franchisees retain certain legal rights and protections despite any general release clauses in the franchise agreement, tailored to comply with specific state regulations.

For Minnesota, the FDD states that any release as a condition of renewal and/or transfer/assignment will not apply to the extent prohibited by applicable law with respect to claims arising under Minn. Rule 2860.4400D. This ensures that Byrider franchisees in Minnesota do not waive their rights under Minnesota law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.