What is the typical radius of a Byrider Protected Territory?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners will not operate or grant a franchise for the operation of another Byrider Business, the physical premises of such Business which is located within a protected territory designated by Byrider Franchising Partners (the "Protected Territory"). The boundaries of your Protected Territory may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, a certain radius surrounding the physical premises of your Byrider Business, or otherwise delineated on a map. Byrider Franchising Partners typically grants a Protected Territory comprising a radius of 2 miles surrounding the Business Location. However, Byrider Franchising Partners may operate and grant franchises for the operation of Byrider Businesses in the Protected Territory if Byrider Franchising Partners delivers a notice of default under the Franchise Agreement to you, upon which you do not cure the default within the applicable cure period, if any.
You may solicit customers, and use other methods of distribution, including the Internet, catalog sales, telemarketing, and other direct marketing, outside of your Protected Territory. Further, Byrider Franchising Partners or other franchisees may solicit customers inside your Protected Territory. You will not receive any compensation from Byrider Franchising Partners in connection with any production, distribution or sales described in this paragraph.
Source: Item 12 — (FDD pages 50–51)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees typically receive a protected territory with a 2-mile radius around their business location. However, Byrider can delineate the boundaries of the protected territory using various methods, including zip codes, streets, landmarks, or county lines. This means the actual shape and size of the territory can vary.
It's important to note that Byrider retains the right to operate or franchise other Byrider businesses within the franchisee's protected territory if the franchisee defaults on the Franchise Agreement and fails to cure the default within the given timeframe. This clause introduces a potential risk, as the protected territory is not guaranteed under all circumstances.
While franchisees can solicit customers and use various marketing methods outside their protected territory, Byrider or other franchisees can also solicit customers within the franchisee's protected territory. This lack of exclusivity within the protected territory could lead to increased competition and potentially impact a franchisee's revenue. Prospective franchisees should carefully consider the implications of these conditions and evaluate the potential for competition within their protected territory before investing in a Byrider franchise.