Can Byrider modify the required insurance amounts to reflect inflation or claims experience?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The minimum limits of insurance coverage required to be procured by the Franchisee may be modified from time to time by the Company, in its sole discretion, by written notice transmitted by the Company to the Franchisee. Upon delivery (or attempted delivery) of such written notice, the Franchisee shall be obligated to immediately purchase insurance conforming to the newly established standards and limits prescribed by the Company. The Company may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverages (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. Franchisee must routinely furnish the Company copies of its Certificate of Insurance or other evidence of maintaining this insurance coverage and paying premiums.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider can modify the minimum limits of insurance coverage required of franchisees. Specifically, Byrider may periodically increase the amounts of coverage required or require different or additional insurance coverages to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.
This means that a Byrider franchisee could see their insurance costs increase during the term of their franchise agreement due to factors outside of their direct control, such as rising inflation or changes in legal precedents. Byrider is required to provide written notice to the franchisee of any such changes, and the franchisee is then obligated to immediately purchase insurance conforming to the newly established standards and limits.
Failure to maintain the required insurance coverage can result in a material breach of the franchise agreement, potentially leading to termination of the agreement if the franchisee does not cure the default within ten days of notification from their insurance company that their insurance has lapsed. Franchisees must also routinely furnish Byrider with copies of their Certificate of Insurance or other evidence of maintaining this insurance coverage and paying premiums.