Is State Required Worker's Compensation and Employer's Liability Insurance required for employees of a Byrider franchise?

According to Byrider's 2025 Franchise Disclosure Document, franchisees are required to maintain State Required Worker's Compensation and Employer's Liability Insurance for their employees. This insurance coverage is mandatory throughout the term of the franchise agreement.

This requirement means that a Byrider franchisee must obtain and keep current a worker's compensation policy that complies with the specific laws of the state in which they operate. Worker's compensation typically covers medical expenses and lost wages for employees who suffer job-related injuries or illnesses. Employer's liability insurance protects the franchisee against lawsuits from employees who claim their injuries are due to the employer's negligence.

Byrider mandates this insurance to protect both the franchisee and the employees, ensuring that there are resources to cover potential workplace incidents. Failing to maintain this required insurance coverage could result in a breach of the franchise agreement, potentially leading to penalties or termination of the franchise. Prospective franchisees should factor in the cost of this insurance when evaluating the overall financial investment required to operate a Byrider franchise.