What restriction applies to financing arranged for the purchase or lease of the Byrider technology system?

According to Byrider's 2025 Franchise Disclosure Document, any financing a franchisee arranges for the purchase or lease of Byrider's technology system must not include terms that encumber the proprietary software in any way. This means that the financing agreement cannot give the lender any rights or claims to the software itself. The FDD explicitly states that ownership rights to the proprietary software will never transfer from Byrider Franchising Partners to the franchisee or any third party.

This restriction protects Byrider's ownership and control over its proprietary software. By preventing lenders from gaining any rights to the software, Byrider ensures that it can continue to update, modify, and control the software without interference from outside parties. This is a common practice in franchising, where franchisors often retain ownership of key intellectual property like software, trademarks, and operating systems.

For a prospective Byrider franchisee, this means that when seeking financing for the technology system, they must ensure that the financing terms do not give the lender any claim to the software. Franchisees may need to work with lenders who understand this restriction and are willing to structure the financing accordingly. Byrider may provide a list of third parties that offer lease packages for the entire technology system, which could simplify the financing process.

It is important for potential franchisees to carefully review any financing agreements to ensure compliance with this restriction. Failure to comply could result in a breach of the franchise agreement and potential legal consequences. Franchisees should consult with legal and financial advisors to ensure they fully understand the implications of this restriction and how it may affect their financing options.