Under the Byrider franchise agreement, can the Company unreasonably withhold or delay consent or approval?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless specifically provided otherwise where the consent or approval of the Company or the Franchisee is required herein, such consent or approval shall not be unreasonably withheld or delayed.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider's consent or approval, when required, cannot be unreasonably withheld or delayed unless specifically stated otherwise. This applies to various situations where the franchisee needs Byrider's consent during the franchise term. This provision aims to ensure fair dealing and prevent Byrider from unduly hindering the franchisee's operations.
This clause protects the franchisee from arbitrary decisions by Byrider. For instance, if a franchisee needs approval for a specific marketing campaign or a minor alteration to the business location, Byrider cannot unreasonably delay or deny such requests. This promotes a more collaborative relationship between the franchisor and franchisee, fostering trust and mutual benefit.
However, it's important to note the phrase "unless specifically provided otherwise." This suggests that there may be certain situations outlined in the franchise agreement where Byrider has the sole discretion to grant or deny consent. A prospective franchisee should carefully review the entire franchise agreement to identify any such exceptions and understand the circumstances under which Byrider's decision is not subject to the reasonableness standard. This ensures the franchisee is fully aware of the scope of Byrider's authority and their own rights and obligations.