conditional

Under what conditions can Byrider suspend or limit the Licensee's access to the Services?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

Licensor shall have the right to suspend or limit, in whole or in part, Licensee's access to the Services upon ten (10) days written notice to Licensee if any amounts due Licensor are more than thirty (30) days past due or as otherwise provided in the Franchise Agreement.

Licensor reserves the right to immediately suspend Licensee's network connectivity and use of the Licensed System if the Licensor believes in good faith that the Licensee poses a threat to the Licensed System or Licensor due to viruses, worms, hacking, or any other situation that presents reasonable dangers.

Upon a showing that Licensee's use no longer poses such a threat, then Licensor shall reactivate Licensee's use of the Licensed System.

Source: Item 23 — Receipts (FDD pages 88–335)

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, Byrider can suspend or limit a licensee's access to services under specific circumstances. Byrider can take such action if any amounts due to them are more than thirty (30) days past due. In this case, Byrider will provide ten (10) days written notice to the licensee before suspending or limiting access. This is also contingent upon what is outlined in the Franchise Agreement.

This stipulation means that a Byrider franchisee must maintain timely payments to Byrider to ensure uninterrupted access to the Licensed System. The Licensed System is crucial for data processing and other services related to the 'buy-here-pay-here' automobile sales and collection management systems. Any disruption could significantly impact the franchisee's ability to manage their business operations effectively.

Additionally, Byrider reserves the right to immediately suspend a licensee's network connectivity and use of the Licensed System if they believe, in good faith, that the licensee poses a threat to the Licensed System or Byrider due to viruses, worms, hacking, or any other situation that presents reasonable dangers. However, once the licensee demonstrates that their use no longer poses such a threat, Byrider is obligated to reactivate the licensee's access to the Licensed System. This clause underscores Byrider's commitment to protecting its system and data from potential security breaches, while also providing a pathway for franchisees to regain access once the threat is resolved.

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.