Is the transfer of an interest in the Byrider franchisee's business in a divorce proceeding considered a 'Transfer'?

According to Byrider's 2025 Franchise Disclosure Document, a transfer of interest in the franchisee's business due to a divorce proceeding is considered a 'Transfer.' Specifically, the FDD states that a transfer includes 'transfer of an interest in the Franchisee or the Franchisee's owners, this Agreement, the Franchisee's Business or substantially all of its assets, or the right to occupy the Business Location in a divorce, insolvency, or entity dissolution proceeding or otherwise by operation of law.'

This means that if a Byrider franchisee's ownership interest in the franchise changes hands as a result of a divorce, this event is classified as a transfer under the franchise agreement. As such, the franchisee must obtain Byrider's prior written approval for the transfer, and Byrider states that this approval will not be unreasonably withheld.

This requirement allows Byrider to maintain control over who operates its franchises and ensures that any new owner meets their standards. The prospective franchisee should carefully review Item 23 of the FDD and discuss the transfer requirements with Byrider to fully understand the process and implications of transferring ownership in the event of a divorce.