Under what conditions does Byrider consent to a franchisee conducting Financing Activities through a Finance Entity?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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,
ascribed to them in the Franchise Agreement.
the Financing Activities as they relate to the Business and, further, that it will engage in the Financing Activities in strict compliance with the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider will consent to a franchisee conducting financing activities through a separate Finance Entity under specific conditions. Byrider requires that the Finance Entity must be either a wholly-owned subsidiary of the franchisee or an affiliate with an ownership structure that mirrors the franchisee's.
Furthermore, the Finance Entity must accept and adhere to all obligations outlined in the Franchise Agreement as if it were a direct signatory. This means the Finance Entity is jointly and severally liable with the franchisee for any breaches of the Franchise Agreement. The Finance Entity's sole business must be to engage in the financing activities related to the Byrider business, and it must conduct these activities in strict compliance with the Franchise Agreement.
Byrider retains the right to withhold or condition its consent at its discretion, emphasizing that the consent is an accommodation to the franchisee and does not separate accountability for obligations under the Franchise Agreement. This ensures that Byrider maintains control over how financing is conducted and that both the franchisee and the Finance Entity are fully accountable for upholding the terms of the agreement.