Under which state's law is the Byrider franchise agreement interpreted and construed?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.5 Governing Law. This Agreement takes effect upon its acceptance and execution by the Company in Indiana and shall be interpreted and construed in accordance with Indiana law.
Any dispute between the parties, except as stated in this Section 20.5, shall be governed by the laws of the State of Indiana which law shall prevail in any event of conflict of law, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. 1051 et seq.), the United States Arbitration Act (9 U.S.C. 1 et seq.), or other federal law.
The provisions of any law of Indiana regarding franchises (including, without limitation, registration, disclosure, or relationship, and the regulations promulgated thereunder) shall not apply unless such law's jurisdictional, definitional and other requirements are met independently of, and without reference to, this Section.
The enforceability of the covenants set forth in Article
XVIII shall be determined in accordance with the law of the state in which Franchisee's Business is located.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the franchise agreement is generally interpreted and construed in accordance with Indiana law. Specifically, the agreement takes effect upon its acceptance and execution by Byrider in Indiana. Any disputes between Byrider and the franchisee will be governed by Indiana law, which will prevail in the event of a conflict of law.
However, there are exceptions to this general rule. The enforceability of non-compete covenants is determined by the law of the state in which the franchisee's business is located. Additionally, for franchisees in Illinois, the laws of Illinois will govern the agreement, except for the U.S. Federal Arbitration Act and other federal laws.
Prospective franchisees should be aware that while Indiana law generally governs the interpretation of the franchise agreement, certain provisions may be subject to the laws of their own state, particularly regarding non-compete clauses and if they are located in Illinois. Franchisees should consult with legal counsel to understand the specific implications of these provisions in their individual circumstances.