What is considered 'timely notice' to Byrider Franchising Partners regarding suits or proceedings?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners will indemnify you against claims and for actual costs associated with defending or participating in a suit or proceeding that arises from your authorized use of the Marks or from Byrider Franchising Partners' gross negligence or willful misconduct or from any mandatory specification, standard or procedure contained in the Manual that is determined to be unlawful. To be indemnified and held harmless by Byrider Franchising Partners, you must give Byrider Franchising Partners timely notice of any suits or proceedings as described above that are pending against you, and you must be in compliance with the Franchise Agreement. Byrider Franchising Partners has the right to participate in and control the suit, proceeding or litigation to the extent Byrider Franchising Partners considers necessary. (Franchise Agreement Article 11.3).
Source: Item 11 — (FDD pages 42–50)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee must give Byrider 'timely notice' of any suits or proceedings pending against them to be indemnified by Byrider. The FDD does not define what constitutes 'timely notice.'
This means that if a franchisee is sued, they must inform Byrider promptly to be eligible for indemnification. Indemnification would cover claims and actual costs associated with defending or participating in a suit or proceeding. The suit or proceeding must arise from the franchisee's authorized use of Byrider's marks, Byrider's gross negligence or willful misconduct, or from any mandatory specification, standard, or procedure in the Manual that is determined to be unlawful.
It is important to note that Byrider also retains the right to participate in and control the suit, proceeding, or litigation to the extent they consider necessary. Additionally, the franchisee must be in compliance with the Franchise Agreement to be indemnified. Since 'timely notice' is not specifically defined, a prospective franchisee should seek clarification from Byrider regarding the expected timeframe for notification to ensure compliance and protect their right to indemnification.