factual

Under what conditions can the Byrider franchise agreement be terminated before the franchisee opens for business?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

Section in
Description Franchise C
Provision Agreement or Summary
other
agreement
h. "Cause" defined – Articles 16.1, Failure to open the Business within
defaults which cannot 16.2 and 16.4 1 year; failure to complete required
be cured initial training prior to opening for
See also Area business; supplying Byrider
Development Franchising Partners with materially
Agreement, false, misleading, incomplete, or
Section 4 inaccurate information; your
software agreement is terminated
by Byrider Franchising Partners for
breach of its provisions; you make
or attempt to make any transfer in
violation of Article 14 of the
Franchise Agreement, you make an
assignment for the benefit of
creditors or are deemed insolvent or
unable to pay your debts generally
as they become due; the business
or Business Location is seized,
taken over, or foreclosed by a
government official, creditor,
lienholder, or lessor and final
judgment is unsatisfied for thirty
days without bond or appeal or a
levy of execution has been made
upon the licenses granted or upon
any property used in the Business
and is not discharged within five
days of such levy; you or any of
your managers, directors, officers or
majority stockholder are convicted
of, or plead guilty or no contest to, a
felony or other criminal misconduct
directly related to the operation of
the Business. You default under
any other agreement with Byrider
Franchising Partners or its affiliates,
which does not afford you a cure
period.

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–63)

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, there are specific conditions that could lead to the termination of the franchise agreement before the franchisee even opens for business. These conditions are categorized as 'cause' defaults that cannot be cured.

Specifically, Byrider can terminate the franchise agreement if the franchisee fails to open the business within one year of signing the agreement. Additionally, failure to complete the required initial training prior to opening for business is also grounds for termination. These stipulations emphasize the importance Byrider places on franchisees meeting established timelines and preparation standards.

Furthermore, providing Byrider with materially false, misleading, incomplete, or inaccurate information can result in termination. This highlights the need for transparency and honesty in all dealings with the franchisor. The termination events also include scenarios where the franchisee's software agreement is terminated due to a breach, indicating the importance of adhering to the technological requirements of the Byrider system. These terms protect Byrider from potential harm caused by franchisees not meeting their initial obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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