Is Byrider required to be named as an additional insured on the insurance coverage acquired by the franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
B. The insurance coverage acquired and maintained by the Franchisee at its own expense, as set forth in subsection (A) of this Section 12.1 shall:
- (1) Name the Company and its designated affiliates as additional insureds;
(2) Extend to and provide indemnity for all obligations assumed by the Franchisee hereunder and all other items for which the Franchisee is required to indemnify the Company under the provisions of this Agreement;
(3) Be primary to and non-contributory with respect to any other insurance purchased by the Company;
(4) Provide, by endorsement, that the Company is entitled to receive at least thirty (30) days prior written notice of any intent to reduce policy limits, restrict coverage, cancel or otherwise alter or amend said policy.
The Franchisee shall not reduce the policy limits, restrict coverage, cancel or otherwise alter or amend said insurance policies without the Company's written consent.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider requires franchisees to name the company and its designated affiliates as additional insureds on their insurance policies. This requirement is part of the insurance coverage the franchisee must acquire and maintain at their own expense.
This stipulation means that Byrider is protected under the franchisee's insurance policies, offering them a layer of financial security in case of claims or lawsuits arising from the franchisee's business operations. The franchisee's insurance coverage must also extend to and provide indemnity for all obligations the franchisee assumes under the franchise agreement, as well as any items for which the franchisee is required to indemnify Byrider.
Furthermore, the franchisee's insurance must be primary and non-contributory with respect to any other insurance Byrider might have. Byrider also requires that they receive at least thirty days' written notice before any changes are made to the franchisee's insurance policy, such as reductions in policy limits, coverage restrictions, cancellations, or amendments. The franchisee cannot alter their insurance policies without Byrider's written consent. Failure to comply with these insurance requirements constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement.