What happens if a mandatory specification in the Byrider manual is determined to be unlawful?

According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners will indemnify franchisees against claims and actual costs if a mandatory specification, standard, or procedure in the manual is determined to be unlawful. This indemnification covers costs associated with defending or participating in a suit or proceeding arising from the unlawful specification.

To be eligible for indemnification, Byrider franchisees must provide timely notice of any suits or proceedings and must be in compliance with the Franchise Agreement. Byrider retains the right to participate in and control the suit, proceeding, or litigation to the extent it deems necessary.

This means that if a franchisee is sued or incurs costs due to following a mandatory specification in the Byrider manual that is later found to be unlawful, Byrider will cover the franchisee's costs, provided the franchisee follows the notification and compliance requirements. This protection helps mitigate the risk for franchisees associated with adhering to Byrider's operational guidelines.