Under the Byrider franchise agreement, is a transfer of a deceased owner's interest to an existing owner considered a 'Transfer'?

According to Byrider's 2025 Franchise Disclosure Document, a transfer of a deceased owner's ownership interest in the Byrider franchise to an existing owner is not considered a 'Transfer' under specific conditions. This exception applies as long as any new majority owner signs all the documents required of a majority owner under the franchise agreement. This provision offers some flexibility in the event of an owner's death, allowing for a smoother transition of ownership within the existing ownership structure.

However, if the transfer of a deceased owner's interest results in a new majority owner, that new owner must formally agree to adhere to the existing franchise agreement by signing all required documents. This ensures that Byrider maintains consistent standards and obligations across all its franchisees, even when ownership changes occur due to unforeseen circumstances like death. This requirement protects Byrider's interests by ensuring the new controlling party is fully committed to the franchise agreement.

This clause provides clarity and a specific exception to the general transfer rules, which typically require Byrider's approval. Byrider retains control over who can become a majority owner, ensuring they meet the brand's standards. For a prospective franchisee, this means understanding the implications of ownership transfer, especially in scenarios involving multiple owners or business partners. It's crucial to have a clear succession plan that aligns with Byrider's transfer policies to avoid potential complications.