Under what grounds can a Byrider franchisee terminate the franchise agreement?

According to the 2025 Byrider Franchise Disclosure Document, a franchisee may terminate the franchise agreement on any grounds available by law. This means that the franchisee's ability to terminate the agreement is not restricted by the franchise agreement itself, but rather is governed by the laws of the relevant jurisdiction. This provides the franchisee with certain protections and rights to terminate the agreement under circumstances defined by law.

This clause is particularly important because franchise agreements often contain specific and limited conditions under which a franchisee can terminate the agreement. By stating that a franchisee can terminate on any grounds available by law, Byrider acknowledges and incorporates all legal rights a franchisee may have, which could include breaches of contract by the franchisor, misrepresentation, or other legal causes. This ensures that the franchisee is not limited to only the termination clauses outlined in the franchise agreement, but can also rely on broader legal protections.

However, the FDD also includes stipulations for franchisees in specific states. For example, the FDD states that California Business and Professions Code Sections 20000 through 20043 provide rights to franchisees concerning termination, transfer, or nonrenewal of a franchise, and if the Franchise Agreement contains a provision that is inconsistent with the aforementioned law, and the aforementioned law applies, it will control. Similarly, Minnesota law might prohibit Byrider from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties or judgment notes. A prospective franchisee should consult with a legal professional to fully understand their rights and obligations regarding termination in their specific jurisdiction.