Under what circumstances can a default by a Byrider franchisee under one agreement be considered a default under another agreement with the company?

According to the 2025 Byrider Franchise Disclosure Document, a franchisee's default under one agreement with Byrider can trigger a default under any other agreement they have with the company. This cross-default provision extends not only to the franchisee but also to any person or company affiliated with the franchisee.

This means that if a Byrider franchisee, or any entity connected to them, fails to meet their obligations under any agreement with Byrider or its affiliates, Byrider can consider this a default under all agreements. This includes, but isn't limited to, other franchise agreements or any other obligations the franchisee or their affiliates have to Byrider or its affiliates.

For a prospective franchisee, this clause is significant because it broadens the scope of what constitutes a default. A seemingly minor infraction under one agreement could have serious repercussions across all their dealings with Byrider. It is important for franchisees to understand all their obligations and ensure compliance across all agreements to avoid triggering a cross-default.