Does the termination of another franchise agreement with Byrider (or its affiliates) by the franchisee constitute grounds for termination of this Byrider franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Termination.
Company may terminate this Agreement, effective immediately upon delivery of termination notice to Franchisee, if any of the following occurs: (i) Franchisee breaches any of the terms of this Agreement at any time; (ii) Franchisee (or any of its affiliates) has made any material misrepresentation or omission on any application, report, claim, financial statement or similar document submitted to Company in connection with acquiring the development rights hereunder or any franchise rights; or (iii) any franchise agreement executed by Franchisee or any of its affiliates for the operation of a Business is terminated for any reason, including without limitation, the Initial Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the company can terminate the franchise agreement immediately if any franchise agreement executed by the franchisee or its affiliates for the operation of a Byrider business is terminated for any reason. This includes, but is not limited to, the Initial Franchise Agreement.
This means that if a franchisee or any of their affiliated entities has multiple Byrider franchises, the termination of one franchise agreement, regardless of the reason for termination, can trigger the termination of all other Byrider franchise agreements held by that franchisee or their affiliates. This clause creates a significant risk for franchisees who own multiple Byrider locations, as issues at one location could jeopardize their entire investment with the brand.
This type of clause is not uncommon in franchising, as franchisors often want to maintain brand consistency and protect their reputation across all locations. However, prospective franchisees should carefully consider the potential implications of such a clause and ensure they have the resources and capabilities to manage all of their Byrider locations effectively to avoid triggering a chain reaction of terminations. It would be prudent to discuss with Byrider the specific circumstances under which this clause would be invoked and whether there are any mitigating factors that would be considered.