Is a Byrider franchisee required to insure Byrider Franchising Partners against claims arising from personal injuries or property damage related to the franchisee's business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
you.
You must purchase at your expense and maintain in effect at all times the greater of the insurance coverage by the landlord for the franchised location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to Byrider Franchising Partners:
- (i) Garage Liability Insurance: $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. You must insure Byrider Franchising Partners against all claims, suits, obligations, liabilities and damages, including attorneys' fees, based upon or arising out of the actual or alleged personal injuries or property damage resulting from or occurring in the course of, or on or about or otherwise relating to your Business or the Business Location. Byrider Franchising Partners may modify the required amounts from time to time to reflect inflation or further experience with claims.
- (ii) State Required Worker's Compensation and Employer's Liability Insurance: for all employees of your Business.
- (iii) Unemployment Insurance: for all employees of your Business.
- (iv) Truth-in-Lending Act Insurance: not less than $300,000.
- (v) All Risks Coverage Insurance: on the Business Location and all fixtures, equipment, supplies and other property used in the operation of your Business, for full repair and replacement value of the machinery, equipment, improvements and betterments, without any applicable co-insurance clause except that an appropriate deductible of no more than $50,000 shall be permitted.
- (vi) Cyber Liability Insurance: not less than $1,000,000 per occurrence.
Byrider Franchising Partners also recommends, but does not require, that you purchase an umbrella policy in the amount of $1,000,000 over and above all liability coverage.
It is further recommended that you 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 for each policy.
For all required insurance coverage, you must: (a) name Byrider Franchising Partners and its designated affiliates as additional insureds; (b) ensure that each policy extends to and provides indemnity for all obligations assumed by you under the Franchise Agreement and all other items for which you are required to indemnify Byrider Franchising Partners under the Franchise Agreement; (c) ensure all such insurance coverage is primary to and non-contributory with respect to any other insurance purchased by Byrider Franchising Partners;
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 36–40)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to obtain garage liability insurance with a $1,000,000 limit per occurrence, including products and completed operations coverage. This insurance must also cover $1,000,000 for Hired Autos and Non-Owned Autos liability and include a Broadened Garage endorsement for Personal and Advertising liability.
The policy must specifically insure Byrider Franchising Partners against all claims, suits, obligations, liabilities, and damages, including attorneys' fees, arising from personal injuries or property damage related to the franchisee's business or business location. Byrider Franchising Partners has the right to modify the required insurance amounts periodically to account for inflation or claims experience.
In addition to garage liability insurance, Byrider requires franchisees to maintain other types of insurance, including 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, and cyber liability insurance of not less than $1,000,000 per occurrence. Byrider Franchising Partners also recommends that franchisees purchase an umbrella policy in the amount of $1,000,000 over and above all liability coverage.
For all required insurance coverage, Byrider requires that Byrider Franchising Partners and its designated affiliates be named as additional insureds, that each policy extends to and provides indemnity for all obligations assumed by the franchisee under the Franchise Agreement, and that all such insurance coverage is primary to and non-contributory with respect to any other insurance purchased by Byrider Franchising Partners. Byrider also requires that it is entitled to receive at least 30 days prior written notice of any intent to reduce policy limits, restrict coverage, cancel, or otherwise alter or amend said policy.