What is the minimum amount of Truth-in-Lending Act Insurance a Byrider franchisee must carry?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. The Franchisee shall purchase at its sole expense and maintain in effect at all times during the Term the greater of the insurance coverage required by the landlord for the Business Location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to the Company:
- (4) Truth-in-Lending Act Insurance not less than $300,000;
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, franchisees must maintain Truth-in-Lending Act Insurance with a minimum coverage of $300,000. This insurance is one of several mandatory coverages Byrider requires to protect the franchisee, the company, and customers against potential risks.
In addition to Truth-in-Lending Act Insurance, Byrider franchisees are required to carry Garage Liability insurance with a $1,000,000 limit per occurrence, State Required Worker's Compensation and Employer's Liability Insurance, Unemployment Insurance, All risks coverage insurance on the Business Location, and Cyber Liability Insurance not less than $1,000,000 per occurrence. Byrider also recommends franchisees purchase an Umbrella policy in the amount of $1,000,000 over and above all liability coverage, as well as vehicle Title Errors and Omissions Coverage, Federal Odometer Coverage, Equal Credit Opportunity Act and Deceptive Sales Practices Coverage in the amount of $1,000,000.
Byrider retains the right to modify the required minimum insurance coverage amounts periodically to reflect inflation, new risks, changes in law, or other relevant circumstances. Franchisees must provide Byrider with copies of their insurance certificates as evidence of coverage and premium payments. Failure to maintain the required insurance can result in the termination of the Franchise Agreement. Byrider also has the option to obtain the required insurance on behalf of the franchisee if the franchisee fails to do so, with the franchisee responsible for reimbursing Byrider for the premiums.