Under what condition is Byrider Franchising Partners, LLC willing to consent to the operation of the Finance Entity?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
We are willing to consent to the operation of the Finance Entity, as described in Recital B, subject to the terms and conditions set forth in this Agreement.
Our Consent. We hereby consent to your conducting the Financing Activities through the Finance Entity during the Term of the Franchise Agreement, provided that the Finance Entity is and remains either your wholly owned subsidiary or your Affiliate whose owners, and the percentages of the ownership held by each, mirror your ownership structure.
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- Acceptance and Assumption of Franchise Agreement. The Finance Entity hereby joins in, accepts and assumes all of the obligations of the "Franchisee" under the Franchise Agreement as if it were a signatory to the Franchise Agreement. The parties agree that all references in the Franchise Agreement to "Franchisee" shall be deemed to be references to both the Finance Entity and you, jointly and severally, and that the Finance Entity's rights with respect to the Financing Activities derive solely from the Franchise Agreement. The Finance Entity and you agree that, unless we provide our prior written consent (which we may withhold or condition at our discretion), the sole business of the Finance Entity will be, and that it will engage only in,
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners, LLC is willing to consent to the operation of a Finance Entity for a franchisee under specific conditions. The Finance Entity must conduct the CNAC financing and collection portion of the business as described in the Franchise Agreement.
Byrider will consent to the franchisee conducting financing activities through a Finance Entity if the Finance Entity remains either a wholly-owned subsidiary of the franchisee or an affiliate whose ownership structure mirrors that of the franchisee. This means the owners and their percentage of ownership in the Finance Entity must be the same as the franchisee's ownership structure.
Furthermore, the Finance Entity must accept and assume all obligations of the franchisee under the Franchise Agreement as if it were a signatory. All references to "Franchisee" in the Franchise Agreement will be deemed to refer to both the Finance Entity and the franchisee, jointly and severally. The Finance Entity's rights concerning financing activities are derived solely from the Franchise Agreement. The Finance Entity's sole business will be to engage in financing activities related to the Byrider business in strict compliance with the Franchise Agreement, unless Byrider provides prior written consent to other activities.