What is the scope of Byrider Franchising Partners' indemnification if a claim arises from Byrider Franchising Partners' gross negligence?

According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners will indemnify franchisees against claims and for actual costs associated with defending or participating in a suit or proceeding that arises from Byrider Franchising Partners' gross negligence. This means that if a franchisee is sued or involved in a legal proceeding due to Byrider Franchising Partners' gross negligence, Byrider Franchising Partners will cover the franchisee's actual costs in defending themselves.

However, to be eligible for indemnification, the franchisee must give Byrider Franchising Partners timely notice of any suits or proceedings and must be in compliance with the Franchise Agreement. This highlights the importance of franchisees promptly informing Byrider Franchising Partners of any legal issues and adhering to the terms of the Franchise Agreement.

Byrider Franchising Partners also retains the right to participate in and control the suit, proceeding, or litigation to the extent they consider necessary. This implies that while Byrider Franchising Partners will cover the costs, they also want to have a say in how the legal matters are handled. This is a common practice in franchising, as the outcome of such legal matters can impact the brand and the entire franchise system.