Under what circumstances is Byrider or the franchisee not liable for failure to perform obligations?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2 No Liability for Acts of the Other. Except as otherwise expressly authorized by this Agreement, neither party hereto will make any express or implied agreements,
warranties, guarantees or representations or incur any debt in the name of or on behalf of the other party, or represent that the relationship between the Company and the Franchisee is other than that of franchisor and franchisee. The Company does not assume any liability, and will not be deemed liable for any agreements, representations, or warranties made by the Franchisee, nor will the Company be obligated for any damages to any person or property that directly or indirectly arise from or relate to the operation of the Franchisee's Business. The Company shall not have the power to hire or fire the Franchisee's employees and, except as herein expressly provided, the Company may not control or have access to the Franchisee's funds or the expenditure thereof, or in any other way exercise dominion or control over the Franchisee's Business. The Company shall not be obligated for any damages to any person or party, directly or indirectly, arising out of the operation of the Franchisee's Business whether caused by the Franchisee's negligent or willful action or failure to act. It is expressly understood and agreed that neither the Franchisee nor any employee of the Franchisee whose compensation for services is paid by the Franchisee may, in any way, directly or indirectly, expressly or by implication, be construed to be an employee of the Company for any purpose, most particularly with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. The Company shall have no liability for any sales, use, occupation, excise, gross receipts, income, property or other taxes, whether levied upon the Franchisee, the Franchisee's Business, or the Franchisee's property, or upon the Company, in connection with sales made or business conducted by the Franchisee or payments to the Company pursuant hereto.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, neither Byrider nor the franchisee will be held liable for the actions or obligations of the other, unless explicitly authorized by the franchise agreement. This means Byrider franchisees operate independently, and Byrider is not responsible for debts, agreements, or misrepresentations made by the franchisee.
Specifically, Byrider is not liable for any damages to people or property that arise from the operation of the franchisee's business. Byrider also does not have the power to hire or fire the franchisee's employees, control the franchisee's funds, or exercise control over the franchisee's business operations. This reinforces the independent contractor relationship between Byrider and its franchisees.
Furthermore, the franchisee or their employees cannot be considered employees of Byrider for any purpose, especially concerning insurance coverage, taxes, or withholdings. Byrider is also not liable for any taxes levied on the franchisee, their business, or their property related to sales or business conducted by the franchisee. This separation of liability is a common arrangement in franchising, designed to protect the franchisor from legal issues arising from the franchisee's operations.