Under what circumstances can Byrider Franchising Partners operate or grant a franchise for another Byrider Business within a franchisee's Protected Territory?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
rmission to you for relocation of the Business.
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.
Byrider Franchising Partners retains the right to (a) add new programs, products and/or services to the Business at any time; (b) establish, operate and franchise a business offering and selling products and/or services which maybe the same or similar
to the products and services offered by the Business under any trade names, trademarks, service marks or logos other than the Marks; (c) use or license the use of the Marks in business other than the Business;
Source: Item 12 — (FDD pages 50–51)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners will not operate or grant a franchise for another Byrider Business within a franchisee's Protected Territory, which is designated by Byrider Franchising Partners. The Protected Territory's boundaries are defined using zip codes, streets, landmarks, county lines, or a radius around the Byrider Business location. Byrider typically grants a Protected Territory comprising a radius of 2 miles surrounding the Business Location.
However, Byrider Franchising Partners reserves the right to operate and grant franchises for Byrider Businesses within the Protected Territory if the franchisee receives a notice of default under the Franchise Agreement and fails to cure the default within the applicable cure period.
If a franchisee signs an Area Development Agreement and complies with its terms, Byrider cannot license other Byrider franchises or open company-owned Byrider Businesses within the protected territory. This protected territory under the Area Development Agreement will be comprised of the counties or cities that the franchisee has agreed to develop. However, Byrider may modify or terminate these rights if the franchisee fails to meet the development schedule or otherwise defaults under the Area Development Agreement. Byrider Franchising Partners must approve the location of any future/additional Byrider Business that the franchisee intends to develop pursuant to the Area Development Agreement, and Byrider's then-current standards for sites and territories will apply.