What rights are reserved by Byrider to own and operate Byrider businesses?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Retention of Rights. Except as explicitly and specifically granted to the Franchisee herein, all rights in and to the Marks, the System, and the Business and the goodwill associated with each of them is hereby reserved to the Company. Franchisee is not granted any rights by implication, innuendo, extension or extrapolation. Specifically, but without limitation, the Company retains the right, but shall not be obligated, to:
- A. Add new programs, products and/or services to the Business at any time;
- B. Establish, operate and franchise a business offering and selling products and/or services which may be the same as or similar to the products and services offered by the Business under any trade names, trademarks, service marks or logos other than the Marks;
- C. Use or license the use of the Marks in business other than the Business;
- D. Acquire the assets or ownership interests of one or more businesses providing products and services similar to those provided at the Business Locations, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating;
- E. Be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at the Business Locations, or by another business; and
- F. Engage in all other activities not expressly prohibited by this Agreement.
Nothing in this Agreement limits the Company's rights to sell, distribute and/or to provide products and services of any kind, under the Marks or otherwise, anywhere except at the Business Location.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider retains specific rights regarding the operation of Byrider businesses, even within a franchisee's exclusive development area. Byrider reserves the right to establish, operate, and franchise businesses that offer similar products or services under different trade names, trademarks, service marks, or logos. This means that while a franchisee may have an exclusive area for the Byrider brand, Byrider can still operate competing businesses under different branding.
Byrider also retains the right to use or license its trademarks outside a franchisee's exclusive development area. Furthermore, Byrider can acquire assets or ownership interests in businesses that offer similar products and services within the franchisee's exclusive development area. After acquiring these businesses, Byrider can franchise, license, or create similar arrangements with them, regardless of their location. This clause allows Byrider to consolidate similar businesses and integrate them into its franchise system.
Additionally, Byrider reserves the right to be acquired by a business providing similar products and services, even if that business operates within a franchisee's exclusive development area. Byrider can also engage in any activities not expressly prohibited by the franchise agreement. These retained rights provide Byrider with considerable flexibility in how it operates and expands its business, potentially impacting the competitive landscape for franchisees.