After termination of the Byrider franchise agreement, does the one-year non-compete period begin immediately?
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 Byrider's 2025 Franchise Disclosure Document, the one-year non-compete period does not automatically begin immediately after the termination or expiration of the Franchise Agreement. Instead, the one-year post-term non-compete period starts on the date the franchisee complies with Article 18.2 of the agreement.
Article 18.2 outlines that after the termination or expiration of the agreement, the franchisee has the right to engage in activities usual and customary to winding up or transferring a business, such as collecting receivables or providing transitional assistance to a transferee. This period for winding-up activities cannot exceed 90 days.
Following this wind-up period, for one year, the franchisee and their owners (or their immediate family members) are restricted from engaging in or having any direct or indirect interest in any Competitive Business. This restriction applies within a 25-mile radius of the former franchisee's Byrider Business or within a 10-mile radius of any Byrider Business in operation or under construction as of the termination date. This means a former franchisee must comply with the terms of Article 18.2 before the one-year non-compete period begins.