When terminating the Byrider franchise agreement, what must the franchisee provide to the company regarding claims and demands?

According to the 2025 Byrider Franchise Disclosure Document, when a franchisee seeks a successor franchise, they must execute and deliver to Byrider a written general release of all claims and demands against Byrider, its officers, directors, representatives, and affiliates. This release is subject to legal limitations, ensuring that the franchisee retains rights mandated by applicable state law. Additionally, Byrider's indemnification obligations remain in effect for two years after the agreement's expiration.

This requirement means that as a condition of renewing their franchise agreement, a franchisee must waive their right to pursue any existing or future legal claims against Byrider, with some exceptions based on state law. This could include claims related to contract disputes, operational issues, or any other grievances the franchisee might have. The franchisee must also confirm that all pending claims and demands against them by any governmental agency or authority are either settled, resolved, or being vigorously defended.

This provision is designed to protect Byrider from potential legal liabilities and ensure a clean slate moving forward with the renewed franchise relationship. However, it places a significant burden on the franchisee, who must carefully assess any potential claims they might have before signing the release. Franchisees should seek legal counsel to fully understand the implications of this release and ensure their rights are protected. The FDD specifies that rights enjoyed by the franchisee mandated by applicable state law shall remain in force.