Are unexercised renewal or extension rights terminated in the event of an assignment of the lease for a Byrider franchise?

According to Byrider's 2025 Franchise Disclosure Document, unexercised renewal or extension rights are not terminated if the lease is assigned. Instead, these rights transfer to the assignee, meaning the party to whom the lease is assigned will benefit from those rights. This provision is part of the agreement between the Landlord, Tenant (franchisee), and Franchisor.

This clause protects the franchisee (Tenant) and any potential assignee (which could be Byrider or another franchisee) by ensuring that valuable renewal options remain valid even if the lease changes hands. It prevents a situation where a lease assignment could inadvertently strip away the right to extend the lease term, which could be crucial for the continued operation of the Byrider business at that location.

For a prospective Byrider franchisee, this is a beneficial term. It provides assurance that if the franchise location's lease is assigned, the option to renew or extend the lease will still be available. This can be an important factor in the long-term viability and potential resale value of the franchise. Franchisees should confirm that this clause is present and enforceable in their specific lease agreements.

This type of clause is relatively common in franchise agreements involving real estate, as it protects the interests of both the franchisor and franchisee in maintaining control over the location and ensuring business continuity.