factual

Under what circumstances will Byrider Franchising Partners indemnify a franchisee?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Indemnification. Byrider Franchising Partners will indemnify you against claims and for actual costs associated with defending or participating in a suit or proceeding that arises from your authorized use of the Marks or from Byrider Franchising Partners' gross negligence or willful misconduct or from any mandatory specification, standard or procedure contained in the Manual that is determined to be unlawful. To be indemnified and held harmless by Byrider Franchising Partners, you must give Byrider Franchising Partners timely notice of any suits or proceedings as described above that are pending against you, and you must be in compliance with the Franchise Agreement. Byrider Franchising Partners has the right to participate in and control the suit, proceeding or litigation to the extent Byrider Franchising Partners considers necessary. (Franchise Agreement Article 11.3).

Source: Item 11 — (FDD pages 42–50)

What This Means (2025 FDD)

According to the 2025 Byrider Franchise Disclosure Document, Byrider Franchising Partners will indemnify a franchisee under specific circumstances. Byrider will cover claims and actual costs for defending or participating in a lawsuit if the suit arises from the franchisee's authorized use of Byrider's trademarks, or from Byrider Franchising Partners' gross negligence or willful misconduct. Indemnification also applies if the suit stems 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. The franchisee must provide Byrider Franchising Partners with timely notice of any such suits or proceedings. Additionally, the franchisee must be in full compliance with the Franchise Agreement at the time the suit arises.

Byrider Franchising Partners retains the right to participate in and control the suit, proceeding, or litigation to the extent it deems necessary. This means that while Byrider may cover the costs, they also have the authority to manage the legal defense strategy. This is a fairly standard clause in franchise agreements, as it protects the brand's reputation and legal interests.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.