Can Byrider terminate the franchise agreement immediately if the franchisee attempts to make a transfer in violation of Article XIV?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) The Franchisee (or any of its owners) makes or attempts to make any transfer in violation of Article XIV;
- (4) The Franchisee makes an assignment for the benefit of creditors or admits in writing its insolvency or inability to pay its debts generally as they become due; the Franchisee consents to the appointment of a receiver, trustee, or liquidator of all or a substantial part of its property; the Franchisee's Business is attached, seized, subjected to a writ or distress warrant, or levied upon, unless the attachment, seizure, writ, warrant, or levy is vacated within thirty (30) days; or any order appointing a receiver, trustee, or liquidator of the Franchisee or the Franchisee's Business is not vacated within thirty (30) days following the order's entry;
- (5) The Franchisee's Business or the Business Location is seized, taken over or foreclosed by a government official in the exercise of its duties, or seized, taken over or foreclosed by a creditor, lienholder or lessor, provided that a final judgment against the Franchisee remains unsatisfied for ninety (90) days (unless a supersedeas or other appeal bond has been filed); or a levy of execution has been made upon the licenses granted hereunder or upon any property used in the Franchisee's Business, and is not discharged within thirty (30) days of such levy;
- (6) The Franchisee or Designated Manager, directors, officers or majority stockholder are convicted of, or plead guilty or no contest to, a felony or other criminal misconduct which is directly related to the operation of the Franchisee's Business; or
- (7) A termination of any other franchise agreement between Franchisee (or any of its affiliates) and Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider can terminate the franchise agreement immediately if the franchisee attempts to make a transfer that violates Article XIV of the agreement. This is one of several conditions that allows Byrider to terminate the agreement without providing an opportunity for the franchisee to correct the issue.
Other conditions that allow Byrider to terminate the franchise agreement immediately include situations where the franchisee makes an assignment for the benefit of creditors, admits insolvency, consents to the appointment of a receiver, or experiences seizure of the business due to unmet financial obligations. Immediate termination can also occur if the franchisee, designated manager, directors, officers, or majority stockholder are convicted of a felony directly related to the business operation, or if any other franchise agreement between the franchisee and Byrider is terminated.
This means a Byrider franchisee must be extremely careful to adhere to the terms of the franchise agreement, particularly regarding transfers and financial obligations. Failure to do so could result in the immediate loss of the franchise. Prospective franchisees should carefully review Article XIV and understand all conditions that could lead to immediate termination to avoid potential breaches and ensure compliance.