What administrative fee does Byrider charge if the franchisee fails to obtain required insurance coverage and Byrider secures it on their behalf?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Reimbursement of our costs, plus 10% administrative fee | As incurred | If you do not obtain the required insurance coverage, Byrider Franchising Partners may secure coverage for you and charge you the insurance costs and Byrider Franchising Partners' expenses. |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee fails to obtain the required insurance coverage, Byrider may secure the coverage on their behalf. In this case, Byrider will charge the franchisee for the reimbursement of the insurance costs, plus a 10% administrative fee. This fee covers Byrider's expenses for securing the insurance coverage.
This policy ensures that all Byrider locations maintain adequate insurance, protecting both the franchisee and Byrider from potential liabilities. However, it also means that franchisees must diligently manage their insurance obligations to avoid incurring additional costs. The 10% administrative fee adds to the overall expense, making it more cost-effective for franchisees to secure their own insurance coverage independently.
Franchisees should ensure they understand the required insurance coverage and maintain their policies to avoid Byrider securing coverage on their behalf. This will help them avoid the additional 10% administrative fee and maintain better control over their expenses. This is a fairly standard practice in franchising, as franchisors want to ensure that all locations have proper insurance coverage.