After termination of the Byrider franchise agreement, what is the geographic radius within which the franchisee is prohibited from operating a Competitive Business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2 After Termination. With the exception of activities usual and customary to the winding-up or transfer of a business (e.g. collection of receivables, transitional assistance to a transferee, etc.) not to exceed 90 days, which activities Company hereby affirms that Franchisee shall have the right in which to engage, Franchisee agrees that for a period of one (1) year immediately following the expiration or termination of this Agreement or any Successor Franchise Agreement, neither it nor any of its owners (or their immediate family members) will (i) engage, participate or assist in any way in the operation of or (ii) have any direct or indirect interest (whether as an owner, investor, partner, director, officer, employee, consultant, representative, agent, landlord, or otherwise) in, any Competitive Business that is located within a twenty-five (25) mile radius of Franchisee's Business or within a ten (10) mile radius of any Business in operation or under construction as of the date of expiration or termination of this Agreement. The one (1) year post-Term noncompete period in this Article 18.2 shall begin on the date Franchisee complies with Article 18.2.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, following the expiration or termination of the Franchise Agreement, a franchisee is restricted from engaging in a Competitive Business within specific geographic boundaries. This restriction applies for one year immediately following the termination or expiration of the agreement.
The non-compete clause prevents the franchisee and their owners (or their immediate family members) from operating, participating in, or having any direct or indirect interest in a Competitive Business. This restriction applies within a twenty-five (25) mile radius of the franchisee's former Byrider Business location. Additionally, the non-compete extends to a ten (10) mile radius of any Byrider Business that is in operation or under construction as of the date of the agreement's expiration or termination.
This means that a former Byrider franchisee cannot open a competing business or work for a competitor within these defined areas for one year after leaving the Byrider system. This restriction is designed to protect Byrider's market share and confidential information. The FDD also states that the one-year post-term non-compete period begins on the date the franchisee complies with Article 18.2 of the agreement.