Under what circumstances will Byrider Franchising Partners indemnify me?

According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners will indemnify franchisees under specific circumstances. Byrider will cover claims and actual costs related to defending or participating in a lawsuit if the suit arises from the franchisee's authorized use of Byrider's trademarks (the Marks). Indemnification also applies if the suit stems from Byrider Franchising Partners' gross negligence or willful misconduct. Additionally, Byrider will provide indemnification if the suit arises from any mandatory specification, standard, or procedure in the Byrider manual that is determined to be unlawful.

However, there are conditions a franchisee must meet to receive indemnification from Byrider. The franchisee must provide Byrider Franchising Partners with timely notice of any pending suits or proceedings. The franchisee must also be in full compliance with the Franchise Agreement at the time of the suit or proceeding. Byrider Franchising Partners retains the right to participate in and control the suit or litigation to the extent it deems necessary.

This indemnification clause is a potentially significant benefit for Byrider franchisees. It offers financial protection against legal claims related to specific aspects of the Byrider business model and brand. However, franchisees should be aware that failure to provide timely notice of a suit or any breach of the Franchise Agreement could void this protection. Franchisees should also recognize that Byrider maintains control over the legal proceedings, which may impact the franchisee's desired course of action in a lawsuit.