Under what conditions, as outlined in Articles 14.2-14.3, can Byrider Franchising Partners withhold consent for a transfer by a franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or other agreement | Summary | |
|---|---|---|---|
| i. | Your obligations on termination/nonrenewal | Article 17.1 | Obligations include payment of outstanding amounts, sale to Byrider Franchising Partners of all assets it selected for your Business at the lower of your cost or fair market value, complete deidentification with Byrider Franchising Partners and return of confidential information (also see below). |
| j. | Assignment of contract by Byrider Franchising Partners | Article 14.1 | No restrictions on Byrider Franchising Partners' right to assign. However, no assignment will be made except to an assignee who, in the good faith and judgment of the franchisor, is willing and able to assume the franchisor's obligations. |
| k. | "Transfer" by you – definition | Articles 14.2 – 14.3 | Includes transfers of rights and interests under the Franchise Agreement and transfers of ownership interest and Business assets. |
| I. | Byrider Franchising Partners' approval of transfer by you | Articles 14.2- 14.3 | Byrider Franchising Partners must give written consent for all transfers but will not unreasonably withhold consent as long as various conditions are being satisfied. |
| m. | Conditions for Byrider Franchising Partners' approval of transfer | Articles 14.2-14.3 | The new franchisee to whom you transfer must have the skills and resources to fulfill your contract obligations, must undertake all obligations including training and signing a Franchise Agreement; you must release all claims against Byrider Franchising Partners, pay a transfer fee (see Item 6) and comply with the Franchise Agreement including the provisions for Byrider Franchising Partners' right of first refusal (see s and t below). |
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, Byrider Franchising Partners' approval is required for all transfers of the franchise. However, Byrider will not unreasonably withhold consent for a transfer if certain conditions are met. These conditions pertain to the capabilities of the new franchisee, the obligations they must undertake, and certain requirements the current franchisee must fulfill.
Specifically, the new franchisee must demonstrate the necessary skills and resources to meet the contractual obligations of the franchise agreement. The new franchisee must also agree to undertake all the obligations of the franchise, including completing training and signing a new Franchise Agreement.
In addition, the franchisee seeking to transfer must release all claims against Byrider, pay a transfer fee (as detailed in Item 6 of the FDD), and comply with all provisions of the Franchise Agreement, including those related to Byrider's right of first refusal.