Does Byrider have a duty to obtain specific insurance for the franchisee?

According to Byrider's 2025 Franchise Disclosure Document, Byrider has no obligation to obtain or maintain specific insurance for the franchisee. However, if the franchisee fails to purchase insurance that conforms to Byrider's standards and limits, Byrider has the right, but not the requirement, to obtain the minimum amount of insurance specified in Subsections 12.1.A.(1) through (5). The franchisee is then responsible for paying or reimbursing Byrider for the insurance premiums.

Byrider imposes minimum standards and limits for certain types of insurance coverage that the franchisee is required to purchase. The franchisee must purchase and maintain insurance coverage at its sole expense at all times during the term of the agreement. This includes garage liability insurance with a $1,000,000 limit per occurrence, 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.

It is recommended, but not required, that the franchisee purchase an umbrella policy in the amount of $1,000,000 over and above all liability coverage. It is further recommended that the franchisee carry 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. Failure by the franchisee to purchase or maintain any required insurance constitutes a material breach of the agreement, potentially leading to termination of the agreement by Byrider.