Under what conditions will Byrider Franchising Partners indemnify a franchisee for claims against them?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners will indemnify you for claims against you and/or your Business that arise 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 (including, such copyrighted materials). As long as you give timely notice of these claims to Byrider Franchising Partners, have complied with the Franchise Agreement and Byrider Franchising Partners has participated in the proceeding as it deems necessary, Byrider Franchising Partners pays the reasonable costs that arise from the action.
Source: Item 14 — (FDD pages 54–55)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider Franchising Partners will indemnify a franchisee under specific conditions related to claims against the franchisee's business. Byrider will provide indemnification if the claims arise from Byrider Franchising Partners' gross negligence or willful misconduct. Indemnification also applies if the claims stem from any mandatory specification, standard, or procedure within the Byrider manual that is determined to be unlawful, including issues related to copyrighted materials.
However, this indemnification is contingent upon the franchisee meeting certain requirements. The franchisee must provide timely notice of the claim to Byrider Franchising Partners. Additionally, the franchisee must have complied with the Franchise Agreement. Byrider Franchising Partners must also participate in the legal proceedings as it deems necessary.
If these conditions are met, Byrider Franchising Partners will cover the reasonable costs associated with the legal action. This protection helps franchisees mitigate potential financial risks arising from issues caused by Byrider's actions or requirements, provided they adhere to the outlined notification and compliance protocols.