Can the terms, including fees, in a Byrider renewal franchise agreement be materially different?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
sions in the agreements attached to this disclosure document.
| | Provision | Section in Franchise Agreement or other agreement | Summary | |----|------------------------------|---------------------------------------------------------------|----------------------------------------------------------------------------------| | a. | Length of the franchise term | Article 5.1 | Unless sooner terminated, 7 years from the day the Franchise Agreement is signed |
| Section in | |||
|---|---|---|---|
| Franchise | |||
| Provision | Agreement or | Summary | |
| 1 10 13 10 11 | other | Summary | |
| agreement | |||
| b. | Renewal or extension | Articles 5.2 and | You have the right to obtain three |
| D. | of the Term | 5.3 | additional, successive franchise |
| or the renn | 0.0 | terms of five years each. However, | |
| if Byrider Franchising Partners is | |||
| then still in the business of licensing | |||
| new franchises, you will have the | |||
| right to obtain unlimited successive | |||
| franchises of five-years each, so | |||
| long as you continue to meet the | |||
| qualifications and conditions for | |||
| each renewal term. | |||
| C. | Requirements for you | Article 5.2 | Requirements include a request to |
| to renew or extend | obtain successive franchise term, | ||
| compliance with the Franchise | |||
| Agreement and with your financial | |||
| obligations to Byrider Franchising | |||
| Partners, execution of proper | |||
| documents. "Renewal" means | |||
| signing our then current franchise | |||
| agreement for a five-year successor | |||
| franchise term, which could contain | |||
| materially different terms (including | |||
| Toursingstion | A | fees). | |
| d. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–63)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the terms of a renewal franchise agreement can be materially different from the original agreement. Specifically, the document states that when a franchisee seeks to renew their agreement for an additional five-year term, they will be required to sign Byrider's then-current franchise agreement. This new agreement could include terms, including fees, that are materially different from the original agreement.
This means that a franchisee should not assume that the terms of their franchise will remain the same upon renewal. Byrider has the right to change the terms, including fees, and the franchisee will need to agree to these changes to continue operating their franchise. This is a fairly standard practice in franchising, as franchisors need to update their agreements to reflect changes in the market, legal requirements, and their own business practices.
For a prospective Byrider franchisee, this highlights the importance of carefully reviewing the franchise agreement at the time of renewal. Franchisees should compare the terms of the new agreement to their original agreement and understand any changes, especially those related to fees and other financial obligations. It would be prudent to seek legal and financial advice to fully understand the implications of the new agreement before signing it.