For how long do Byrider's indemnification obligations remain in force after the expiration of the agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. The Franchisee executes and delivers to the Company a written general release (except as may be limited by law) of all claims and demands against the Company, its officers, directors, representatives and affiliates provided, however, that all rights enjoyed by the Franchisee mandated by applicable state law shall remain in force and the Company's indemnification obligations under Section 11.3.B shall remain in force for a period of two (2) years after the expiration of this Agreement; and
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider's indemnification obligations under Section 11.3.B remain in force for a period of two years after the expiration of the Franchise Agreement. This means that even after the franchise agreement ends, Byrider could still be responsible for covering certain losses, damages, or liabilities that the franchisee might incur, as defined within Section 11.3.B, for a limited time.
This extended obligation provides some security for the franchisee after the agreement concludes. It suggests that certain responsibilities of Byrider to protect the franchisee from specific risks continue for a defined period. However, the franchisee needs to understand the exact scope of Section 11.3.B to fully grasp what liabilities are covered during this two-year period.
It is important for a prospective Byrider franchisee to carefully review Section 11.3.B of the franchise agreement to understand the specific circumstances under which Byrider's indemnification obligations apply. Franchisees should also seek legal counsel to fully understand the implications of this clause and how it might affect their business operations even after the franchise term ends.