Under what circumstances is a Byrider franchisee required to indemnify and hold harmless the company?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Franchisee shall indemnify and hold harmless the Company, its subsidiaries and affiliates, and their respective officers, directors, shareholders, agents and employees, from and against any and all losses, expenses, judgments, claims, reasonable attorneys' fees, and damages arising out of or in connection with any claim arising directly or indirectly from, as a result of, or in connection with Franchisee's operation of the Franchisee's Business. Franchisee shall promptly notify the Company of any suits filed by or against Franchisee in connection with the operation of the Franchisee's Business and, upon request, shall furnish the Company with copies of such documents from the suit as the Company may request.
- B. The Company shall indemnify and hold the Franchisee harmless from and against any and all claims, and the cost of defending such claims, caused by the gross negligence or willful misconduct of the Company or arising from any mandatory specification, standard or procedure contained in the Manual that is determined to be unlawful, provided that the Franchisee shall have given the Company timely notice of such claim or proceeding and is not in default under this Agreement and, provided further, that the Company shall have the right to participate in and, to the extent the Company deems necessary, to control any such litigation or proceeding.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, a franchisee is required to indemnify and hold harmless Byrider, its subsidiaries and affiliates, and their respective officers, directors, shareholders, agents, and employees. This obligation extends to any and all losses, expenses, judgments, claims, reasonable attorneys' fees, and damages.
This indemnification requirement is triggered by any claim arising directly or indirectly from, as a result of, or in connection with the franchisee's operation of the Byrider business. This means that if a customer, employee, or any other party brings a claim against Byrider due to something related to the franchisee's business operations, the franchisee is responsible for covering Byrider's associated costs.
The franchisee is also obligated to promptly notify Byrider of any suits filed by or against the franchisee in connection with the operation of the franchisee's business. Upon request, the franchisee must provide Byrider with copies of relevant documents from the suit. However, Byrider will indemnify and hold the franchisee harmless from and against any and all claims, and the cost of defending such claims, caused by the gross negligence or willful misconduct of the Company or arising from any mandatory specification, standard or procedure contained in the Manual that is determined to be unlawful, provided that the Franchisee shall have given the Company timely notice of such claim or proceeding and is not in default under this Agreement and, provided further, that the Company shall have the right to participate in and, to the extent the Company deems necessary, to control any such litigation or proceeding.