What is the required lease rate if a Byrider franchisee must lease the business location to Byrider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, if a franchisee or their affiliate owns the approved business location, and the franchise agreement is terminated either due to the franchisee's breach or by the franchisee without a valid reason before its scheduled expiration, Byrider has the option to lease the business location. In such cases, the lease rate will be set at the 'market rent' for a term of two years.
This clause protects Byrider by ensuring they can maintain control over strategically important locations even if a franchisee relationship ends prematurely. It also allows Byrider to continue operations without interruption, minimizing potential losses and maintaining brand presence in the market.
For a prospective franchisee, this condition highlights the importance of adhering to the franchise agreement and maintaining a positive relationship with Byrider. Failure to do so could result in the loss of control over the business location, even if the franchisee owns the property. Additionally, understanding 'market rent' and how it will be determined is crucial, as it directly impacts the financial implications of such a leaseback scenario.