Under what conditions will a Byrider franchisee or its affiliate be required to lease the business location to Byrider or its affiliate?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisee or its affiliate owns the approved Business Location, Franchisee agrees that upon termination of this Agreement by Company due to Franchisee's breach or termination by Franchisee without cause prior to the scheduled expiration according to 5.1 herein, Franchisee or its affiliate will, at Company's election, lease the Business Location to Company or its affiliate at market rent for a term of two (2) years.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee or its affiliate may be required to lease the business location to Byrider or its affiliate under specific circumstances related to the termination of the franchise agreement.
Specifically, if the franchisee or its affiliate owns the approved business location, and Byrider terminates the franchise agreement due to the franchisee's breach, or if the franchisee terminates the agreement without cause before its scheduled expiration, Byrider has the option to require the franchisee or its affiliate to lease the business location to Byrider or its affiliate.
If Byrider exercises this option, the lease will be at market rent for a term of two years. This condition is significant for prospective franchisees who own their business location, as it could impact their property rights upon termination of the franchise agreement under the specified conditions.