What must Byrider franchisees ensure regarding the insurance coverage and indemnity for obligations assumed under the Franchise Agreement?

According to Byrider's 2025 Franchise Disclosure Document, franchisees must meet specific requirements regarding insurance coverage to protect both themselves and Byrider Franchising Partners. For all required insurance coverage, Byrider franchisees must name Byrider Franchising Partners and its designated affiliates as additional insureds. This protects Byrider from potential liabilities arising from the franchisee's operations.

Furthermore, franchisees must ensure that each insurance policy extends to and provides indemnity for all obligations assumed under the Franchise Agreement. This means the insurance must cover any liabilities the franchisee is responsible for under the agreement, including any items for which the franchisee is required to indemnify Byrider Franchising Partners. The insurance coverage must be primary and non-contributory with respect to any other insurance purchased by Byrider Franchising Partners, meaning Byrider's insurance will not be required to contribute to a claim if the franchisee's insurance covers it.

Finally, Byrider franchisees must provide, through an endorsement on the insurance policy, that Byrider Franchising Partners 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 the policy. This ensures Byrider is aware of any changes to the franchisee's insurance coverage that could affect their protection. These stipulations are in place to standardize insurance coverage and protect Byrider, its franchisees, and their customers against potential risks.