Under what agreement must the owners of a Byrider franchise personally guarantee obligations?

According to Byrider's 2025 Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, or other entity, the owners must sign a personal guaranty to fulfill all obligations under the Franchise Agreement. This requirement ensures that Byrider has recourse to the personal assets of the owners should the franchise entity fail to meet its financial or contractual obligations. The Franchise Agreement is listed as Exhibit B in the FDD.

This personal guarantee is a standard practice in franchising, particularly for newer or smaller franchise systems. It mitigates the risk for the franchisor, Byrider, by ensuring that there is a responsible party with a vested interest in the success of the franchise. The personal guaranty means that the franchisee's owners are personally liable for the debts and obligations of the franchise, which could include unpaid royalties, lease payments, or other financial obligations.

Prospective Byrider franchisees should carefully review the terms of the personal guaranty and understand the full extent of their personal liability. They should also consult with an attorney or financial advisor to assess the risks and implications of signing such a guarantee. It is important to note that the personal guaranty extends to all obligations under the Franchise Agreement, not just financial ones, so owners must ensure the business complies with all operational and brand standards as well.