What is the maximum deductible permitted for the All Risks Coverage Insurance for a Byrider franchise?

According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to maintain All Risks Coverage Insurance on the Business Location and all fixtures, equipment, supplies, and other property used in the operation of their Byrider business. This insurance must cover the full repair and replacement value of the machinery, equipment, improvements, and betterments.

The FDD specifies that this All Risks Coverage Insurance should not include any co-insurance clause. However, Byrider permits an appropriate deductible of no more than $50,000. This means that in the event of a covered loss, the franchisee would be responsible for the first $50,000 of expenses, with the insurance policy covering the remaining amount up to the full repair and replacement value.

This requirement ensures that Byrider franchisees have adequate coverage to protect their business assets against potential risks such as fire, theft, or natural disasters. The $50,000 deductible is a critical factor for prospective franchisees to consider, as it represents a significant out-of-pocket expense they would need to cover in the event of a claim. Franchisees should factor this potential cost into their financial planning and ensure they have sufficient resources to meet this obligation.