What is the 'Renewal Franchise Agreement' in the context of the Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
and consent to the lease are limited to those provisions and items that the Company believes are necessary and appropriate solely for its own purposes and its own benefit as the licensor of the Marks and the System. The Franchisee has been
hereby deleted and replaced in its entirety with the following:
advised to obtain the advice of its own professional advisors before the Franchisee signs or makes any adjustments to the lease to accommodate its operation of the Franchisee's Business. In the event Franchisee or its affiliate owns the approved Business Location, Franchisee agrees that upon termination of this Agreement by Company due to Franchisee's breach or termination by Franchisee without cause prior to the scheduled expiration according to 5.1 herein, Franchisee or its affiliate will, at Company's election, lease the Business Location to Company or its affiliate at market rent for a term of two (2) years.
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- Opening. Section 7.4 of the Renewal Franchise Agreement is hereby deleted.
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- Initial Franchise Fee. Section 9.1 of the Renewal Franchise Agreement is hereby deleted.
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- Right to Terminate Prior to Opening. Section 16.1 of the Renewal Franchise Agreement is hereby deleted.
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- Termination of Existing Franchise Agreement. Upon execution of this Addendum and the Renewal Franchise Agreement, the Existing Franchise Agreement shall terminate and be of no further force or effect.
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- Release. Franchisee, on behalf of itself and its respective current and former parents, affiliates, and subsidiaries, and their respective agents, spouses, heirs, principals, attorneys, owners, officers, directors, representatives, predecessors, successors, and assigns (the "Releasing Parties"), do hereby absolutely and irrevocably release and discharge the Company and its parents, subsidiaries, and affiliates, and their respective current and former owners, officers, directors, employees, managers, agents, representatives, predecessors, successors, and assigns (the "Company Parties"), of and from any and all claims, obligations, debts, proceedings, demands, causes of actions, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever (collectively, "Claims"), whether known or unknown, suspected or unsuspected, at law or in equity, which any of them has, had or may have, from the beginning of time to the date hereof, including, without limitation, those arising out of or relating in any way to the Existing Franchise Agreement or any other agreement between Franchisee or any of the other Releasing Parties and the Company or any of the Company Partie
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the Renewal Franchise Agreement involves specific changes to the terms of the franchise relationship upon renewal. An addendum to the Renewal Franchise Agreement modifies or deletes certain sections, indicating that the renewal process isn't simply an extension of the original agreement but involves a renegotiation of terms.
Specifically, the addendum outlines the deletion of sections concerning 'Opening' (Section 7.4), 'Initial Franchise Fee' (Section 9.1), and 'Right to Terminate Prior to Opening' (Section 16.1) from the Renewal Franchise Agreement. This suggests that certain initial obligations or rights associated with a new franchise are waived or altered upon renewal, likely because the franchisee is already an established operator. The termination of the Existing Franchise Agreement upon execution of the addendum and the Renewal Franchise Agreement signifies a complete replacement of the old contract with the new one.
Furthermore, the addendum includes a 'Release' clause, where the franchisee releases Byrider from any and all claims related to the Existing Franchise Agreement. This is a significant point, as it means the franchisee waives their right to sue Byrider for any past issues once the Renewal Franchise Agreement is in effect. However, any general release provided does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. All other terms of the Renewal Franchise Agreement remain in full force and effect.
Prospective franchisees should carefully review the Renewal Franchise Agreement and its addendum to understand the changes in their obligations, rights, and relationship with Byrider upon renewal. It is also important to note that the franchisee is encouraged to seek legal counsel to fully understand the implications of the release and other terms within the Renewal Franchise Agreement.