factual

Under the Byrider Franchise Agreement, what constitutes 'cause' for termination if the franchisee fails to open the Business?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

Section in
Description Franchise C
Provision Agreement or Summary
other
agreement
h. "Cause" defined – Articles 16.1, Failure to open the Business within
defaults which cannot 16.2 and 16.4 1 year; failure to complete required
be cured initial training prior to opening for
See also Area business; supplying Byrider
Development Franchising Partners with materially
Agreement, false, misleading, incomplete, or
Section 4 inaccurate information; your
software agreement is terminated
by Byrider Franchising Partners for
breach of its provisions; you make
or attempt to make any transfer in
violation of Article 14 of the
Franchise Agreement, you make an
assignment for the benefit of
creditors or are deemed insolvent or
unable to pay your debts generally
as they become due; the business
or Business Location is seized,
taken over, or foreclosed by a
government official, creditor,
lienholder, or lessor and final
judgment is unsatisfied for thirty
days without bond or appeal or a
levy of execution has been made
upon the licenses granted or upon
any property used in the Business
and is not discharged within five
days of such levy; you or any of
your managers, directors, officers or
majority stockholder are convicted
of, or plead guilty or no contest to, a
felony or other criminal misconduct
directly related to the operation of
the Business. You default under
any other agreement with Byrider
Franchising Partners or its affiliates,
which does not afford you a cure
period.

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 can terminate the franchise agreement with cause if the franchisee fails to open the business within a year of signing the agreement. This is a critical deadline for prospective franchisees.

Additionally, Byrider can terminate the agreement before the business opens if the franchisee does not satisfactorily complete the required training program. This highlights the importance of fully engaging with and completing the training provided by Byrider. Supplying materially false, misleading, incomplete, or inaccurate information to Byrider Franchising Partners is also grounds for termination.

These stipulations protect Byrider by ensuring franchisees are adequately prepared and committed to opening and operating the business according to the franchise's standards and timeline. Missing the one-year opening deadline or failing to complete training suggests a lack of commitment or preparedness, which could negatively impact the Byrider brand. Franchisees should be aware of these potential pitfalls and take proactive steps to meet all requirements and deadlines.

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.
All Byrider 2025 FAQs Ask FDD Ninja