Under what conditions will an Affiliate be required to lease the Business Location to Byrider Franchising Partners, LLC or its designee?

According to Byrider's 2025 Franchise Disclosure Document, an affiliate that owns the real estate of a Byrider business location may be required to lease the location to Byrider Franchising Partners, LLC, or its designee under specific circumstances. This obligation arises if the Franchise Agreement is terminated either due to the franchisee's breach or if the franchisee terminates the agreement without a valid cause before its scheduled expiration, as outlined in section 5.1 of the agreement.

Upon Byrider Franchising Partners, LLC making a written request, the affiliate is obligated to lease the business location. The lease would be at fair market rent and would be for a term of two years. However, the agreement explicitly states that Byrider Franchising Partners, LLC is not obligated to lease the Business Location.

This clause protects Byrider's interest in maintaining a presence in a specific market even if a franchisee exits the system prematurely. It ensures Byrider has the option to continue operations at an established location, minimizing disruption to the brand and customer base. For a prospective franchisee, this highlights the importance of understanding the conditions under which the franchise agreement can be terminated and the potential implications for affiliated entities that own the business location's real estate.