Are there any exceptions to the 'no third party rights' clause in the Byrider franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
on, any provision of this Agreement or any specification, standard or operating procedure prescribed by the Company is invalid or unenforceable, the prior notice or other action required by such law or rule shall be substituted for the notice requirements hereof, or such invalid or unenforceable provision, specification, standard or operating procedure shall be modified to the extent required to be valid and enforceable. Such modifications to this Agreement shall be effective only in such jurisdictions and shall be enforced as originally made and entered into in all other jurisdictions.
- 20.2 No Third Party Rights. Anything to the contrary herein notwithstanding, nothing in this Agreement is intended, nor shall it be deemed to confer upon any person or legal entity other than the Company or the Franchisee and such of their respective successors and assigns as may be contemplated by this Agreement, any rights or remedies under or by reason of this Agreement, except as provided in Section 18.5 and Section 19.1.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the franchise agreement generally does not confer rights or remedies to third parties, with specific exceptions outlined in Sections 18.5 and 19.1.
The document states that despite the agreement to arbitrate, both Byrider and the franchisee retain the right to seek temporary restraining orders and preliminary injunctive relief from a court, provided they simultaneously submit the dispute for arbitration. The FDD specifies that these provisions are intended to benefit and bind certain third-party non-signatories, even after the agreement expires or terminates.
For prospective franchisees, this means that while the franchise agreement primarily governs the relationship between Byrider and the franchisee, certain provisions, particularly those related to dispute resolution, may extend to and impact third parties. Franchisees should carefully review Sections 18.5 and 19.1 of the franchise agreement to understand the scope and implications of these exceptions.