Is Unemployment Insurance required for the employees of a Byrider franchise's business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
in and, to the extent the Company deems necessary, to control any such litigation or proceeding.
ARTICLE XII
INSURANCE
12.1 Required Insurance. To standardize insurance and to afford the Franchisee, the Company and the Franchisee's customers protection against insurable risks, the
Company imposes and prescribes minimum standards and limits for certain types of insurance coverage required to be purchased by the Franchisee.
- A. The Franchisee shall purchase at its sole expense and maintain in effect at all times during the Term the greater of the insurance coverage required by the landlord for the Business Location or the following categories of insurance coverage through licensed and admitted insurance companies acceptable to the Company:
- (1) Garage Liability insurance with $1,000,000 limit per occurrence with products and completed operations coverage included. Coverage must also include $1,000,000 for Hired Autos and Non-Owned Autos liability. Coverage must also include a Broadened Garage endorsement for Personal and Advertising liability. Franchisee shall insure the Company against all claims, suits, obligations, liabilities and damages, including attorneys' fees, based upon or arising out of the actual or alleged personal injuries or property damage resulting from or occurring in the course of, or on or about or otherwise relating to the business or the Business Location, provided that the required amounts herein may be modified from time to time by the Company to reflect inflation or further experience with claims;
- (2) State Required Worker's Compensation and Employer's Liability Insurance for the employees of the Franchisee's Business;
- (3) Unemployment Insurance for the employees of the Franchisee's Business;
- (4) Truth-in-Lending Act Insurance not less than $300
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider franchisees are required to purchase and maintain certain types of insurance coverage during the term of their agreement. This insurance must be obtained through licensed and admitted insurance companies that are acceptable to Byrider.
Among the required insurance coverages is Unemployment Insurance for the employees of the Byrider franchise's business. This means that franchisees must provide unemployment insurance as mandated by the state for their employees.
In addition to Unemployment Insurance, Byrider franchisees must also maintain Garage Liability insurance with a $1,000,000 limit per occurrence, State Required Worker's Compensation and Employer's Liability Insurance, Truth-in-Lending Act Insurance of not less than $300,000, All risks coverage insurance on the Business Location, and Cyber Liability Insurance of not less than $1,000,000 per occurrence. Franchisees must provide Byrider with Certificates of Insurance no later than ten days before opening their business and complete copies of their insurance policies within thirty days of delivering the certificates. Failure to maintain the required insurance can result in termination of the Franchise Agreement.