Is a Broadened Garage endorsement for Personal and Advertising liability required for the Garage Liability insurance of a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
in and, to the extent the Company deems necessary, to control any such litigation or proceeding.
ARTICLE XII
INSURANCE
12.1 Required Insurance. To standardize insurance and to afford the Franchisee, the Company and the Franchisee's customers protection against insurable risks, the
Company imposes and prescribes minimum standards and limits for certain types of insurance coverage required to be purchased by the Franchisee.
- A. The Franchisee shall purchase at its sole expense and maintain in effect at all times during the Term the greater of the insurance coverage required by the landlord for the Business Location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to the Company:
- (1) Garage Liability insurance with $1,000,000 limit per occurrence with products and completed operations coverage included. Coverage must also include $1,000,000 for Hired Autos and Non-Owned Autos liability. Coverage must also include a Broadened Garage endorsement for Personal and Advertising liability. Franchisee shall insure the Company against all claims, suits, obligations, liabilities and damages, including attorneys' fees, based upon or arising out of the actual or alleged personal injuries or property damage resulting from or occurring in the course of, or on or about or otherwise relating to the business or the Business Location, provided that the required amounts herein may be modified from time to time by the Company to reflect inflation or further experience with claims;
- (2) State Required Worker's Compensation and Employer's Liability Insurance for the employees of the Franchisee's Business;
- (3) Unemployment Insurance for the employees of the Franchisee's Business;
- (4) Truth-in-Lending Act Insurance not less than $300,000;
- (5) All risks coverage insurance on the Business Location and all fixtures, equipment, supplies and other property used in the operation of the Franchisee's Business, for full repair and replacement value of the machinery, equipment, improvements and betterments, without any applicable co-insurance clause except that an appropriate deductible of no more than $5
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a Broadened Garage endorsement for Personal and Advertising liability is required for the Garage Liability insurance coverage that franchisees must obtain. Byrider franchisees are required to purchase Garage Liability insurance with a $1,000,000 limit per occurrence, which must include products and completed operations coverage. The coverage must also include $1,000,000 for Hired Autos and Non-Owned Autos liability.
This insurance protects both the franchisee and Byrider from claims, suits, obligations, liabilities, and damages, including attorney's fees, related to personal injuries or property damage occurring in connection with the business or the Business Location. Byrider retains the right to modify the required insurance amounts periodically to account for inflation or claims experience.
In addition to Garage Liability insurance, Byrider franchisees must also maintain State Required Worker's Compensation and Employer's Liability Insurance, Unemployment Insurance, Truth-in-Lending Act Insurance of not less than $300,000, All risks coverage insurance on the Business Location, and Cyber Liability Insurance of not less than $1,000,000 per occurrence. While not required, the FDD recommends that franchisees purchase an Umbrella policy in the amount of $1,000,000 over and above all liability coverage, as well as vehicle Title Errors and Omissions Coverage, Federal Odometer Coverage, Equal Credit Opportunity Act and Deceptive Sales Practices Coverage in the amount of $1,000,000.