What standards must a proposed transferee meet for a non-controlling interest transfer to be approved by Byrider?

According to Byrider's 2025 Franchise Disclosure Document, a non-controlling (less than 50%) ownership interest in a Byrider franchise can be transferred if the proposed transferee and their direct and indirect owners (if the transferee is a legal entity) are of good character and meet Byrider's then-applicable standards for franchisees. Additionally, all proposed transferees must complete and submit Byrider's current franchise application form.

This means that if a franchisee wishes to transfer a minority stake in their Byrider business, the person or entity receiving that stake must be vetted and approved by Byrider. The potential transferee will need to demonstrate that they are of good character and meet the standards Byrider has in place at the time of the proposed transfer for new franchisees. This process ensures that even minority owners align with Byrider's brand and operational expectations.

It is important for prospective franchisees to understand that Byrider retains the right to assess and approve any transfer of ownership, even for non-controlling interests. This provision allows Byrider to maintain standards across its franchise system and protect its brand reputation. Franchisees should familiarize themselves with the specific standards Byrider applies to new franchisees to understand the criteria a potential transferee will need to meet.