What is the minimum amount of Truth-in-Lending Act Insurance that a Byrider franchisee is required to carry?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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You must purchase at your expense and maintain in effect at all times the greater of the insurance coverage by the landlord for the franchised location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to Byrider Franchising Partners:
- (i) Garage Liability Insurance: $1,000,000 limit per occurrence with products and completed operations coverage included. Coverage must also include $1,000,000 for Hired Autos and Non-Owned Autos liability. Coverage must also include a Broadened Garage endorsement for Personal and Advertising liability. You must insure Byrider Franchising Partners against all claims, suits, obligations, liabilities and damages, including attorneys' fees, based upon or arising out of the actual or alleged personal injuries or property damage resulting from or occurring in the course of, or on or about or otherwise relating to your Business or the Business Location. Byrider Franchising Partners may modify the required amounts from time to time to reflect inflation or further experience with claims.
- (ii) State Required Worker's Compensation and Employer's Liability Insurance: for all employees of your Business.
- (iii) Unemployment Insurance: for all employees of your Business.
- (iv) Truth-in-Lending Act Insurance: not less than $300,000.
- (v) All Risks Coverage Insurance: on the Business Location and all fixtures, equipment, supplies and other property used in the operation of your Business, for full repair and replacement value of the machinery, equipment, improvements and betterments, without any applicable co-insurance clause except that an appropriate deductible of no more than $50,000 shall be permitted.
- (vi) Cyber Liability Insurance: not le
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 36–40)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees must maintain Truth-in-Lending Act Insurance of no less than $300,000. This insurance is one of several types Byrider requires to protect the franchisee, Byrider Franchising Partners, and customers against various risks. Byrider mandates these minimum standards and limits for specific insurance coverages.
In addition to Truth-in-Lending Act Insurance, Byrider franchisees must also 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, and Cyber Liability Insurance of not less than $1,000,000 per occurrence. Byrider Franchising Partners also recommends an umbrella policy of $1,000,000 over all liability coverage, as well as vehicle Title Errors and Omissions Coverage, Federal Odometer Coverage, Equal Credit Opportunity Act, and Deceptive Sales Practices Coverage, each in the amount of $1,000,000.
Byrider Franchising Partners must be named as an additional insured on all required insurance policies, and the policies must cover all obligations assumed by the franchisee under the Franchise Agreement. Furthermore, Byrider Franchising Partners is entitled to at least 30 days' prior written notice of any intent to reduce policy limits, restrict coverage, cancel, or otherwise alter the insurance policy. Franchisees must ensure that their insurance coverage is primary and non-contributory with respect to any other insurance purchased by Byrider Franchising Partners.