Are there any activities that a former Byrider franchisee can engage in after termination without violating the non-compete agreement?
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, a former franchisee can engage in activities usual and customary to winding up or transferring the business for up to 90 days without violating the non-compete agreement. These activities include the collection of receivables and providing transitional assistance to a transferee.
However, after this 90-day period, the franchisee is restricted for one year from engaging in or having any interest in a Competitive Business within a 25-mile radius of the former franchisee's Byrider location or within a 10-mile radius of any other Byrider Business in operation or under construction. This restriction applies to the franchisee, their owners, and their immediate family members. The definition of 'interest' is broad, including roles as an owner, investor, partner, director, officer, employee, consultant, representative, agent, or landlord.
It is important to note that the one-year post-term non-compete period begins on the date the franchisee complies with Article 18.2 of the franchise agreement. This means that the non-compete clock doesn't start ticking until the franchisee has fulfilled all their obligations related to the termination or expiration of the agreement.