Does the insurance policy for a Byrider franchisee extend to and provide indemnity for all obligations assumed by the franchisee under the agreement, and all other items for which the franchisee is required to indemnify Byrider?
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.
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 extend to and provide indemnity for all obligations the franchisee assumes under the franchise agreement. This also includes all other items for which the franchisee is required to indemnify Byrider.
This requirement means that the Byrider franchisee's insurance policy must cover any liabilities or obligations that the franchisee has agreed to take on as part of the franchise agreement. It also covers any situations where the franchisee is required to protect Byrider from losses or damages. Byrider also requires that they and their affiliates are named as additional insureds on the franchisee's policies.
Furthermore, the franchisee's insurance must be primary and non-contributory, meaning it pays out before any insurance Byrider holds. Byrider also requires at least 30 days' written notice if the franchisee intends to reduce policy limits, restrict coverage, cancel, or alter the policy. The franchisee cannot make these changes without Byrider's written consent. Failure to maintain the required insurance can result in Byrider terminating the franchise agreement.