Under what condition is a transferee of a Byrider franchise after death or incapacity not required to execute the then-current form of franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
A. In the event of the death or incapacity of the Franchisee (if it is a natural person) or the death or incapacity of Franchisee's principal owner (if Franchisee is a legal entity), the Franchisee's or such principal owner's heirs, personal representatives, executors, guardians, administrators or conservators, as applicable, shall, within one hundred eighty (180) days following such death or incapacity, complete the transfer of the Franchisee's interest in this Agreement, the Franchisee's Business and Business Location or, as applicable, of the principal owner's interest in Franchisee, to a person or entity approved by the Company. The person to whom such interests are proposed to be transferred must meet the Company's standards for new franchisees, agree to execute the then-current form of franchise agreement, and, within ninety (90) days after the death or legal incapacity of the Franchisee (or the death or legal incapacity of the principal owner of the Franchisee if the Franchisee is a legal entity), shall have satisfactorily completed the Company's then current Initial Training Program; provided that the transferee will not be required to execute the then-current form of franchise agreement if the transferee is an immediate family member of Franchisee (or the deceased owner if Franchisee is an entity). If at the time of such death or legal incapacity the Franchisee has employed a manager who has satisfactorily completed such training program, such manager shall be deemed to have satisfied such training requirements. The term "incapacity" means a mental or physical disability, impairment, or condition that is reasonably expected to prevent or actually does prevent the Franchisee or its principal owner from supervising the management and operation of the Franchisee's Business. In the event the transferee is an immediate family member of Franchisee (or the deceased owner if Franchisee is an entity), then no Transfer Fee shall be due to the Company.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, in the event of the death or incapacity of a franchisee, the franchisee's heirs or representatives have 180 days to transfer the franchise to an approved person or entity. Generally, the transferee must meet Byrider's standards for new franchisees and agree to execute the then-current franchise agreement. They also need to complete Byrider's Initial Training Program within 90 days of the franchisee's death or incapacity.
However, there is an exception: the transferee is NOT required to execute the then-current franchise agreement if they are an immediate family member of the franchisee (or the deceased owner if the franchisee is an entity). If the franchisee already has a manager who has satisfactorily completed the training program at the time of death or incapacity, the training requirement is considered fulfilled.
This exception can be a significant benefit for franchisees who wish to pass their business on to their family. Additionally, if the transferee is an immediate family member, no Transfer Fee is due to Byrider. This facilitates a smoother and less costly transition of the franchise within the family.