Under what circumstances is the Byrider Rider being signed?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ons 19 and 20 of the Illinois Franchise Disclosure Act.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Company. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.
| "FRANCHISEE" | "COMPANY" | |
|---|---|---|
| «Name_of_Franchisee», «Entity_Type» | BYRIDER FRANCHISING PARTNERS, LLC | |
| «Signatory»«Signatory_Title» | By: Michael J. Onda, Chief Executive Officer |
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MARYLAND
| 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 the 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. |
| Terms not |
| otherwise defined in this Rider have the meanings as defined in the Franchise Agreement. This |
| Rider is being signed because (a) the Franchisee is a resident of the State of Maryland; or (b) |
| Franchisee's Business is or will be operated in the State of Maryland; or (c) the offer to sell is |
| made in the State of Maryland; or (d) the offer to buy is accepted in the State of Maryland. |
| 2. |
| MARYLAND FRANCHISE REGISTRATION AND DISCLOSURE LAW. |
| The following is added as a new Section 2.12 of the Franchise Agreement: |
| 2.12 |
| MARYLAND FRANCHISE REGISTRATION AND DISCLOSURE |
| LAW. All representations requiring the Franchisee to assent to a release, estoppel |
| or waiver of liability are not intended to nor shall they act as a release, estoppel or |
| waiver of any liability incurred under the Maryland Franchise Registration and |
| Disclosure Law. |
- RELEASES. The following is added to the end of Sections 5.2(F), 6.1(E), and 14.3(C)(6) of the Franchise Agreement:
However, any release required as a condition of renewal, sale and/or assignment/transfer will not apply to any claims or liability arising under the Maryland Franchise Registration and Disclosure Law.
- INSOLVENCY. The following sentence is added to the end of Section 16.2(A)(4) of the Franchise Agreement:
This Section 16.2(A)(4) may not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.).
- ARBITRATION. The following paragraph is added to the end of Section 19.1 of the Franchise Agreement:
A Maryland franchise regulation states that it is an unfair or deceptive practice to require the Franchisee to waive its right to file a lawsuit in Maryland claiming a
violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
- GOVERNING LAW. The following paragraph is added to the end of Section 20.5 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, and (2) Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- CHOICE OF FORUM. The following language is added to the end of Section 20.6 of the Franchise Agreement:
The Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- LIMITATION OF ACTIONS. The following sentence is added to the end of Section 20.9 of the Franchise Agreement:
Franchise must bring any claims arising under the Maryland Franchise Registration and Disclosure Law within 3 years after Company grants the Franchisee the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.
| "FRANCHISEE" | "COMPANY" | ||
|---|---|---|---|
| «Name_of_Franchisee», «Entity_Type» | BYRIDER FRANCHISING PARTNERS, LLC | ||
| «Signatory»«Signatory_Title» | By: Michael J. Onda, Chief Executive Officer |
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MINNESOTA
| 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 the 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. |
| Terms not |
| otherwise defined in this Rider have the meanings as defined in the Franchise Agreement. This |
| Rider is being signed because (a) Franchisee's Business will be operated wholly or partly in the |
| State of Minnesota; and/or (b) the Franchisee is either a resident of, domiciled in, or actually |
| present in the State of Minnesota. |
| 2. |
| RELEASES. The following provision is added to the end of Section 5.2(F) and |
| Section 14.3(B)(6) of the Franchise Agreement: |
| Any release required as a condition of renewal and/or assignment/transfer will not |
| apply to the extent prohibited by the Minnesota Franchise Law. |
| 3. |
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Rider is an addendum to either the Area Development Agreement or the Franchise Agreement, and it is signed under specific circumstances related to the franchisee's location or activities within certain states.
For franchisees operating or planning to operate in Minnesota, the Rider is signed if the franchisee's business will be operated wholly or partly in Minnesota, or if the franchisee is a resident of, domiciled in, or actually present in Minnesota. In New York, the Rider is signed if an offer to sell or buy is made or accepted in the state, or if the franchisee is domiciled or will operate their business in New York. Similarly, for Illinois, the Rider is signed if the franchise offer is made or accepted in Illinois, and the franchisee's business is or will be located there, or if the franchisee is domiciled in Illinois.
In Rhode Island, the Rider is signed if an offer to sell or buy is made or accepted in the state, or if the franchisee is a resident and their business is or will be operated in Rhode Island. For Maryland, the Rider is required if the franchisee is a resident, the business will be operated there, or the offer to sell or buy is made in Maryland. Finally, in North Dakota, the Rider is signed if an offer to sell or buy is made in the state, or if the franchisee is domiciled or will operate their business there.
These Riders modify the original agreements to ensure compliance with specific state laws, such as those related to franchise termination in Minnesota, franchise disclosure in Maryland, or governing law in Rhode Island. They also address releases and waivers of liability, ensuring franchisees retain rights under state laws like New York's General Business Law or protecting them from certain conditions related to renewal or transfer in North Dakota. Therefore, prospective Byrider franchisees should carefully review these Riders to understand their rights and obligations based on their location.