Under the Byrider Franchise Agreement, if either the Finance Entity or the franchisee breaches the agreement, what is the liability for such breach?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Finance Entity and you each acknowledge and agree that an act or omission of one will be deemed to be the act or omission of the other, and each will be responsible for the consequences of that act or omission irrespective of who committed it. Further, a breach by either the Finance Entity or you of the Franchise Agreement will constitute a breach of the entire Franchise Agreement, and both the Finance Entity and you will bear liability for such breach, jointly and severally. While we may elect to do so, we are not required to proceed against the Finance Entity and you jointly or to proceed against one before proceeding against the other.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the Finance Entity and the franchisee acknowledge that the actions of one will be considered the actions of the other. This means both entities are responsible for the consequences, regardless of who committed the act.
Specifically, a breach of the Franchise Agreement by either the Finance Entity or the franchisee constitutes a breach of the entire agreement. Both the Finance Entity and the franchisee will bear liability for such a breach, and this liability is joint and several. This means Byrider can choose to pursue action against both parties together or against either party individually.
This clause ensures that Byrider is protected and can seek recourse in case of a breach, regardless of which entity directly caused the breach. Prospective franchisees should understand that they are fully accountable for the actions of their Finance Entity and vice versa, which could have significant financial and legal implications.