Under what condition can Byrider Franchising Partners operate or grant franchises for the operation of Byrider Businesses in the Protected Territory?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 may be defined using zip codes, streets, landmarks, county lines, or a radius around the Byrider Business location. Typically, Byrider grants a Protected Territory comprising a 2-mile radius around the Business Location.
However, Byrider Franchising Partners reserves the right to operate or 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 specified cure period. This means that a franchisee's protected territory is not guaranteed and can be compromised if the franchisee does not meet the obligations outlined in the Franchise Agreement.
Prospective franchisees should be aware that while they are granted a Protected Territory, this protection is contingent upon their compliance with the Franchise Agreement. Failure to meet the agreement's terms can result in Byrider Franchising Partners operating or franchising another Byrider Business within the franchisee's territory, increasing competition and potentially impacting the franchisee's business. This is a fairly standard clause in franchise agreements, as franchisors need to maintain the ability to ensure brand standards and market coverage are upheld.