To what extent does Byrider Franchising Partners have the right to control a suit for which they are providing indemnification?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Indemnification. 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, Byrider Franchising Partners has specific rights regarding the control of suits for which they provide indemnification. Byrider will indemnify a franchisee against claims and actual costs related to defending or participating in a suit if it arises from the franchisee's authorized use of Byrider's marks, Byrider Franchising Partners' gross negligence or willful misconduct, or from any mandatory specification, standard, or procedure in the Manual that is determined to be unlawful.
However, to receive indemnification, the franchisee must give Byrider Franchising Partners timely notice of any such suits or proceedings and must be in compliance with the Franchise Agreement. Crucially, Byrider Franchising Partners retains the right to participate in and control the suit, proceeding, or litigation to the extent they deem necessary.
This means that while Byrider offers to cover certain legal costs, they also reserve the authority to influence or dictate the legal strategy and decisions in the case. For a prospective franchisee, this highlights the importance of adhering to the Franchise Agreement and maintaining open communication with Byrider Franchising Partners regarding any legal issues to ensure eligibility for indemnification and to understand the extent of Byrider's control over the legal proceedings.