Does the insurance coverage acquired by the Byrider franchisee need to name the Company as an additional insured?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
B. The insurance coverage acquired and maintained by the Franchisee at its own expense, as set forth in subsection (A) of this Section 12.1 shall:
- (1) Name the Company and its designated affiliates as additional insureds;
(2) Extend to and provide indemnity for all obligations assumed by the Franchisee hereunder and all other items for which the Franchisee is required to indemnify the Company under the provisions of this Agreement;
(3) Be primary to and non-contributory with respect to any other insurance purchased by the Company;
(4) Provide, by endorsement, that the Company is entitled to receive at least thirty (30) days prior written notice of any intent to reduce policy limits, restrict coverage, cancel or otherwise alter or amend said policy.
The Franchisee shall not reduce the policy limits, restrict coverage, cancel or otherwise alter or amend said insurance policies without the Company's written consent.
- 12.2 The Company's Right to Purchase. If the Franchisee fails to purchase insurance conforming to the standards and limits prescribed by the Company, the Company may (but is not required to) obtain, through agents and insurance companies of its choosing, the minimum amount of insurance specified in Subsections 12.1.A.(1) through (5).
Payments for such insurance shall be borne by the Franchisee and the Franchisee expressly agrees to forthwith pay the required premiums or to reimburse the Company therefor.
Nothing contained herein shall be construed or deemed to impose any duty or obligation upon the Company to obtain or maintain any specific forms, kinds or amounts of insurance for or on behalf of the Franchisee.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the insurance coverage acquired by the franchisee must name Byrider and its designated affiliates as additional insureds. This requirement is part of the minimum insurance standards Byrider imposes on its franchisees.
In addition to naming Byrider as an additional insured, the franchisee's insurance coverage must extend to and provide indemnity for all obligations assumed by the franchisee under the franchise agreement. It must also be primary and non-contributory with respect to any other insurance purchased by Byrider. Furthermore, the insurance policy must provide that Byrider is entitled to receive at least thirty days prior written notice of any intent to reduce policy limits, restrict coverage, cancel, or otherwise alter or amend the policy.
The franchisee is prohibited from reducing policy limits, restricting coverage, canceling, or otherwise altering or amending the insurance policies without Byrider's written consent. If a franchisee fails to purchase insurance conforming to Byrider's standards and limits, Byrider has the right, but not the obligation, to obtain the minimum required insurance, with the franchisee bearing the costs. Failure to maintain the required insurance constitutes a material breach of the Franchise Agreement, potentially leading to termination of the agreement if not cured within ten days of notification of lapse.