Is Byrider liable for any agreements, representations, or warranties made by the Byrider franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2 No Liability for Acts of the Other. Except as otherwise expressly authorized by this Agreement, neither party hereto will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name of or on behalf of the other party, or represent that the relationship between the Company and the Franchisee is other than that of franchisor and franchisee. The Company does not assume any liability, and will not be deemed liable for any agreements, representations, or warranties made by the Franchisee, nor will the Company be obligated for any damages to any person or property that directly or indirectly arise from or relate to the operation of the Franchisee's Business. The Company shall not have the power to hire or fire the Franchisee's employees and, except as herein expressly provided, the Company may not control or have access to the Franchisee's funds or the expenditure thereof, or in any other way exercise dominion or control over the Franchisee's Business. The Company shall not be obligated for any damages to any person or party, directly or indirectly, arising out of the operation of the Franchisee's Business whether caused by the Franchisee's negligent or willful action or failure to act. It is expressly understood and agreed that neither the Franchisee nor any employee of the Franchisee whose compensation for services is paid by the Franchisee may, in any way, directly or indirectly, expressly or by implication, be construed to be an employee of the Company for any purpose, most particularly with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. The Company shall have no liability for any sales, use, occupation, excise, gross receipts, income, property or other taxes, whether levied upon the Franchisee, the Franchisee's Business, or the Franchisee's property, or upon the Company, in connection with sales made or business conducted by the Franchisee or payments to the Company pursuant hereto.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider does not assume liability for agreements, representations, or warranties made by its franchisees. The franchise agreement explicitly states that Byrider will not be held responsible for any agreements, representations, or warranties made by the franchisee. Furthermore, Byrider is not liable for damages to any person or property that arise from the operation of the franchisee's business.
This provision underscores the independent nature of the franchisor-franchisee relationship. Byrider franchisees operate their businesses independently, and Byrider does not exert control over their funds or expenditures, except as expressly provided in the franchise agreement. Byrider also lacks the authority to hire or fire the franchisee's employees. This reinforces the understanding that neither the franchisee nor their employees are considered employees of Byrider for any purpose, including insurance coverage, taxes, or withholdings.
This lack of liability extends to various taxes, including sales, use, occupation, excise, gross receipts, income, and property taxes, whether levied upon the franchisee, their business, or their property. Byrider is not responsible for these taxes in connection with sales made or business conducted by the franchisee. This separation of liability is a common arrangement in franchising, designed to protect the franchisor from the actions and obligations of its independent franchisees.