What must a Byrider franchisee do to be indemnified by the company for claims caused by gross negligence or willful misconduct of the company?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. The Company shall indemnify and hold the Franchisee harmless from and against any and all claims, and the cost of defending such claims, caused by the gross negligence or willful misconduct of the Company or arising from any mandatory specification, standard or procedure contained in the Manual that is determined to be unlawful, provided that the Franchisee shall have given the Company timely notice of such claim or proceeding and is not in default under this Agreement and, provided further, that the Company shall have the right to participate in and, to the extent the Company deems necessary, to control any such litigation or proceeding.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider will indemnify a franchisee against claims resulting from the company's gross negligence or willful misconduct, or from unlawful mandates in the operating manual, provided the franchisee meets certain conditions.
Specifically, the franchisee must give Byrider timely notice of any such claim or proceeding. Additionally, the franchisee must not be in default under the Franchise Agreement at the time the claim arises.
Furthermore, Byrider retains the right to participate in and control any litigation or proceeding related to the claim, to the extent it deems necessary. This means that while Byrider provides indemnification, it also has the power to manage the legal defense, which could impact the franchisee's involvement and influence in the process.