What is required of individuals with ownership interest in a Byrider franchise who do not execute a guaranty?

According to Byrider's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or other entity, each owner with 50% or more direct or indirect interest must execute a guaranty, binding them to the Franchise Agreement and any ancillary agreements. However, if no single individual owns 50% or more, then individuals who collectively own at least 50% must execute a guaranty.

For those with ownership interest in the Byrider franchise who do not execute a guaranty, they must sign a joinder in a form prescribed by Byrider. This joinder commits them to be personally bound by the covenants restricting transfers of interest in the franchisee, as well as confidentiality and noncompetition covenants applicable to all owners under the Franchise Agreement.

This requirement ensures that even non-guarantying owners are bound by certain key obligations, particularly those related to maintaining the integrity of the franchise network through transfer restrictions and protecting Byrider's confidential information and competitive position. Prospective franchisees should carefully review these covenants and understand their implications before investing in a Byrider franchise.