Where in the Byrider FDD can I find information about the franchisee's obligation to provide proof of insurance?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4 Proof of Insurance. The Franchisee shall promptly provide the Company with Certificates of Insurance evidencing such coverage no later than ten (10) days prior to the opening date of the Franchisee's Business.
The Franchisee shall deliver a complete copy of the Franchisee's insurance in force within thirty (30) days following the delivery of the Certificates of Insurance.
All insurance policies and documents shall be renewed, and upon such renewal, a renewal Certificate of Insurance shall be furnished to the Company prior to the expiration date of the existing term(s) of such policy(ies).
- 12.5 Notice of Claims. The Franchisee shall notify the Company of any and all claims or demands against the Franchisee, the Franchisee's Business, the Business Location, and/or the Company within five (5) business days of any such claim or demand.
The Franchisee agrees to respond to all claims within the time required by law, rule or regulation.
The Franchisee shall cooperate with the Company (or its designee) to defend the Company and the Franchisee against any and all claims made by employees, customers or third parties.
The Franchisee shall, when necessary, make appearances at administrative or other hearings to present or reinforce such defenses.
- 12.6 Failure to Insure Right to Terminate. Failure by the Franchisee to purchase or maintain any insurance required by this Agreement, or failure to reimburse the
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Item 23 outlines the franchisee's obligation to provide proof of insurance. Specifically, the franchisee must furnish Certificates of Insurance to Byrider no later than ten days before the business's opening date. Following this, a complete copy of the insurance policy must be delivered within thirty days of providing the certificates.
Furthermore, Byrider franchisees are obligated to renew their insurance policies and provide renewal Certificates of Insurance to Byrider before the expiration date of the existing policies. This ensures continuous coverage and compliance with the franchise agreement. The franchisee is also required to promptly notify Byrider of any claims or demands against the franchisee, their business, the business location, or Byrider itself, within five business days of such an event.
These requirements are typical in franchise agreements to protect both the franchisee and franchisor from potential liabilities and ensure that the business operates with adequate financial safeguards. Byrider also stipulates that failure to maintain the required insurance can result in termination of the franchise agreement, highlighting the importance of adhering to these insurance obligations.