Must the terms of a Byrider franchisee's location lease or purchase agreement be submitted to the company for approval?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
e Franchisee is strictly responsible for the acts or omissions of its contractors regarding compliance with this Article VII and the Company shall have no responsibility for such acts or omissions. The Company shall not be liable for any loss or damage arising from the plans or specifications for the Business Location by reason of its approval of plans and specifications, or otherwise.
- 7.3 Location Lease or Purchase Agreement. Upon the written approval of the proposed Business Location, the Franchisee shall execute a lease (if the Business Location is to be leased) or a binding agreement to purchase the site, the terms of which shall have been previously submitted to the Company for approval. The Company's approval of the lease will be conditioned upon, among other things, execution by Franchisee and the landlord the form of lease addendum attached as Exhibit F hereto. If the landlord is an affiliate of Franchisee, Franchisee must cause the landlord to execute the affiliated entity joinder attached as Exhibit G hereto. The Company's review of and consent to the lease are limited to those provisions and items that the Company believes are necessary and appropriate solely for its own purposes and its own benefit as the licensor of the Marks and the System. The Franchisee has been advised to obtain the advice of its own professional advisors before the Franchisee signs or makes any adjustments to the lease to accommodate its operation of the Franchisee's Business. In the event Franchisee or its affiliate owns the approved Business Location, Franchisee agrees that upon termination of this Agreement by Company due to Franchisee's breach or termination by Franchisee without cause prior to the scheduled expiration according to 5.1 herein, Franchisee or its affiliate will, at Company's election, lease the Business Location to Company or its affiliate at market rent for a term of two (2) years.
- 7.4 Opening for Franchisee's Business. The Franchisee shall give the Company at least sixty (60) days prior written notice of the opening of the Franchisee's Business ("Notice of Opening").
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee plans to lease or purchase a location, the terms of the lease or purchase agreement must be submitted to Byrider for approval. Byrider's approval is required before the franchisee executes the lease or purchase agreement.
Byrider's approval of the lease is conditional and may require the franchisee and landlord to execute a specific lease addendum. If the landlord is affiliated with the franchisee, the landlord must execute an affiliated entity joinder. However, Byrider's review and consent are limited to provisions they deem necessary for their own purposes as the licensor of the Byrider marks and system.
If Byrider has previously approved a lease and the franchisee continues to operate under that lease or exercises a renewal option, Byrider waives the requirement for further lease review and approval. However, if the lease terms are amended or the franchisee wants to enter into a new lease, that new or amended lease is subject to Byrider's review and approval. The FDD advises franchisees to seek advice from their own professional advisors before signing or adjusting the lease.