Under what condition does a Byrider franchisee have the right to obtain unlimited successive five-year renewal terms?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary contained in Section 5.2 of this Agreement, the Company agrees that if Company is then still in the business of licensing new franchises for the operation of BYRIDER businesses, Franchisee shall have the right to obtain unlimited successive five (5) year renewal terms provided that Franchisee meets the qualifications and conditions for the successor franchise set forth in, and subject to the terms and conditions of, Sections 5.2 and 5.3 of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee may be eligible for unlimited successive five-year renewal terms if Byrider is still licensing new franchises for Byrider businesses. This is contingent upon the franchisee meeting the qualifications and conditions outlined in Sections 5.2 and 5.3 of the franchise agreement.
Specifically, to qualify for renewal, the franchisee must adhere to the conditions in Sections 5.2 and 5.3 of the agreement. These sections likely cover various aspects of compliance, performance, and adherence to Byrider's standards. The franchisee must also continue to meet these terms and conditions throughout the original term of the agreement to maintain eligibility for renewal.
This provision offers a significant benefit to Byrider franchisees who maintain good standing and operate their businesses successfully. The ability to secure unlimited five-year renewal terms provides long-term stability and the potential for continued profitability, assuming Byrider continues to offer new franchises. Franchisees should carefully review Sections 5.2 and 5.3 of the franchise agreement to fully understand the specific requirements for obtaining these renewal terms.