What rights does Byrider Franchising Partners have regarding suits or proceedings for which it is providing indemnification?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners will indemnify you against claims and for actual costs associated with defending or participating in a suit or proceeding that arises from your authorized use of the Marks or from Byrider Franchising Partners' gross negligence or willful misconduct or from any mandatory specification, standard or procedure contained in the Manual that is determined to be unlawful. To be indemnified and held harmless by Byrider Franchising Partners, you must give Byrider Franchising Partners timely notice of any suits or proceedings as described above that are pending against you, and you must be in compliance with the Franchise Agreement. Byrider Franchising Partners has the right to participate in and control the suit, proceeding or litigation to the extent Byrider Franchising Partners considers necessary. (Franchise Agreement Article 11.3).
Source: Item 11 — (FDD pages 42–50)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners has specific rights regarding suits or proceedings for which they are providing indemnification to a franchisee. Byrider will indemnify a franchisee against claims and actual costs if the suit or proceeding arises from the franchisee's authorized use of Byrider's Marks, from Byrider Franchising Partners' gross negligence or willful misconduct, or from any mandatory specification, standard, or procedure in the Manual that is determined to be unlawful.
However, to receive indemnification, the franchisee must give Byrider Franchising Partners timely notice of any such suits or proceedings and must be in compliance with the Franchise Agreement. This means a franchisee cannot delay notifying Byrider of a potential issue and must be following all the rules outlined in their agreement.
Byrider Franchising Partners retains the right to participate in and control the suit, proceeding, or litigation to the extent they deem necessary. This gives Byrider significant influence over the legal strategy and decisions related to the case, which is a common practice in franchising to protect the brand's reputation and interests. The franchisee should be aware that while Byrider will cover certain costs, they also have a say in how the legal matter is handled.