Under what condition related to purchase price and payment terms will Byrider approve an assignment?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 Procedure Regarding Right of First Refusal and Assignment. If the Franchisee (or any of its owners) at any time determine to effectuate a Control Assignment, the Franchisee agrees to obtain from a responsible and fully disclosed buyer, and send to Company a true and complete copy of a bona fide, executed written offer (which may include a letter of intent) relating exclusively to the Control Assignment.
The offer must include details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee (or any of its owners) intends to proceed with a Control Assignment, they must first obtain a bona fide, executed written offer from a responsible buyer and provide a true and complete copy to Byrider. This offer must exclusively relate to the Control Assignment.
Specifically, the offer needs to include detailed information regarding the payment terms of the proposed sale. It must also outline the sources and terms of any financing that the buyer intends to use to fund the purchase price. This allows Byrider to assess the financial viability and stability of the proposed assignment.
Byrider retains a right of first refusal, allowing them to match the offer's terms and take over the franchise themselves or assign it to a nominee. If Byrider chooses not to exercise this right, they may still object to the assignment or impose conditions on it. If the terms of the Control Assignment are materially changed after Byrider's review, it is considered a new offer, and Byrider's right of first refusal is reinstated.