Under what conditions, related to the termination of the Franchise Agreement, will the 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 conditions related to the termination of the Franchise Agreement. This requirement is triggered if the Franchise Agreement is terminated by Byrider 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 such termination and a written request from Byrider Franchising Partners, LLC, the affiliate is obligated to lease the business location. The lease will be at fair market rent and will be for a term of two years. However, the agreement also specifies that Byrider is not obligated to lease the business location, even if the conditions for requiring the affiliate to offer the lease are met.

This clause ensures Byrider has the option to maintain control over key locations even if a franchisee's operation ceases. For a potential 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. It also underscores the need to negotiate fair terms in the lease agreement between the franchisee and the affiliate to protect the franchisee's interests while complying with Byrider's requirements.