Does Byrider's right to seek an injunction for non-compete violations depend on whether the franchisee has claims against Byrider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, the Franchisee expressly agrees that the existence of any claims it may have against the Company, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by the Company for the covenants not to compete set forth in this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider's right to seek an injunction for non-compete violations is not dependent on whether the franchisee has claims against Byrider. The franchise agreement states that a franchisee cannot use any claims it may have against Byrider as a defense against Byrider enforcing the non-compete covenants. This means Byrider can pursue legal action to prevent a franchisee from violating the non-compete agreement, regardless of any grievances the franchisee might have against Byrider.
This provision is significant for prospective franchisees because it limits their ability to defend against a non-compete enforcement action. Even if a franchisee believes Byrider has acted unfairly or breached the franchise agreement, they cannot use these claims as a shield against Byrider seeking an injunction to stop them from competing. This could put franchisees in a difficult position if they feel Byrider has wronged them but are still bound by the non-compete obligations.
It is important for potential Byrider franchisees to understand this clause and its implications. They should consider seeking legal advice to fully understand their rights and obligations under the franchise agreement, particularly regarding non-compete restrictions and potential disputes with Byrider. Franchisees should also be aware that Byrider views violations of the non-compete agreement as causing immediate and irreparable harm, justifying injunctive relief.