Under what circumstances is the Byrider Rider to the Franchise Agreement signed in relation to Rhode Island?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER (this "Rider") is made and entered into by and between BYRIDER FRANCHISING PARTNERS, LLC, a Delaware limited liability company whose address it 12802 Hamilton Crossing Boulevard, Carmel, Indiana, 46032 (the "Company"), and a(n) whose principal business address is (the "Franchisee"). |
|---|
| 1. |
| BACKGROUND. The Company and Franchisee are parties to that certain |
| Franchise |
| Agreement |
| dated |
| , |
| 20 |
| (the |
| "Franchise |
| Agreement"). This Rider is annexed to and forms an integral part of the Franchise Agreement. |
| This Rider supersedes any inconsistent or conflicting provisions of the Franchise Agreement. This |
| Rider is being signed because (a) an offer to sell is made or accepted in the State of Rhode Island; |
| or (b) an offer to buy is accepted in the State of Rhode Island; or (c) Franchise is a resident of the |
| State of Rhode Island and Franchisee's Business is or will be operated in the State of Rhode Island. |
| 2. |
| GOVERNING LAW. The following paragraph is added to the end of Section 20.5 |
| ("Governing Law") of the Franchise Agreement: |
| Notwithstanding the foregoing, (1) any state law regulating the offer or sale of |
| franchises or governing the relationship of a franchisor and its franchisee will not |
| apply unless its jurisdictional requirements are met independently without |
| reference to this section, (2) the enforceability of those provisions of this |
| Agreement which relate to restrictions on Franchisee and its owners' competitive |
| activities will be governed by the laws of the state in which the Franchisee's |
| Business is located; and (3) to the extent required by applicable law, Rhode Island |
| law will apply to claims arising under the Rhode Island Franchise Investment Act. |
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Rider to the Franchise Agreement is signed under specific circumstances related to Rhode Island. This Rider is used when (a) an offer to sell a Byrider franchise is made or accepted in Rhode Island, (b) an offer to buy a Byrider franchise is accepted in Rhode Island, or (c) the franchisee is a resident of Rhode Island and their Byrider business is or will be operated in Rhode Island.
This means that if a potential franchisee in Rhode Island is considering purchasing a Byrider franchise, or if a Rhode Island resident intends to operate a Byrider franchise, this Rider will be attached to the standard Franchise Agreement. The Rider modifies the original agreement to account for specific legal considerations within Rhode Island.
Additionally, the FDD states that to the extent required by applicable law, Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act. The franchisee may bring an action in Rhode Island for claims arising under the Rhode Island Franchise Investment Act.