Does the Byrider franchisee have to insure the Company against claims arising from personal injuries or property damage related to the business location?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
in and, to the extent the Company deems necessary, to control any such litigation or proceeding.
ARTICLE XII
INSURANCE
12.1 Required Insurance. To standardize insurance and to afford the Franchisee, the Company and the Franchisee's customers protection against insurable risks, the
Company imposes and prescribes minimum standards and limits for certain types of insurance coverage required to be purchased by the Franchisee.
- A. The Franchisee shall purchase at its sole expense and maintain in effect at all times during the Term the greater of the insurance coverage required by the landlord for the Business Location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to the Company:
- (1) Garage Liability insurance with $1,000,000 limit per occurrence with products and completed operations coverage included. Coverage must also include $1,000,000 for Hired Autos and Non-Owned Autos liability. Coverage must also include a Broadened Garage endorsement for Personal and Advertising liability. Franchisee sha
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to secure insurance coverage to protect Byrider against claims related to personal injuries or property damage occurring at the business location. Specifically, franchisees must obtain Garage Liability insurance with a $1,000,000 limit per occurrence, which includes coverage for products and completed operations, hired and non-owned autos liability, and a Broadened Garage endorsement for personal and advertising liability. This insurance policy must explicitly cover Byrider against claims, suits, obligations, liabilities, and damages, including attorney's fees, arising from actual or alleged personal injuries or property damage related to the business or its location. Byrider retains the right to modify the required insurance amounts periodically to account for inflation or claims experience.
In practical terms, this means a Byrider franchisee must secure and maintain a Garage Liability insurance policy that names Byrider as an insured party, protecting the franchisor from financial losses due to incidents like customer injuries on the premises or damage caused by vehicles used in the business. The $1,000,000 coverage limit represents the maximum amount the insurance company will pay for a covered claim. The inclusion of specific endorsements and coverages, such as Hired Autos and Non-Owned Autos liability and the Broadened Garage endorsement, ensures comprehensive protection for a variety of potential liabilities.
The franchisee bears the sole expense of obtaining and maintaining this insurance coverage throughout the term of the franchise agreement. Failure to maintain the required insurance can result in penalties, including potential termination of the franchise agreement. This requirement is in place to standardize insurance coverage across all Byrider locations and to protect both the franchisee and Byrider from significant financial risks associated with operating the business.
Prospective franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and consult with qualified insurance professionals to ensure they can obtain the necessary coverage at a reasonable cost. Understanding these insurance obligations is crucial for assessing the overall financial feasibility of investing in a Byrider franchise.