What is a 1-800-GOT-JUNK? franchisee responsible for regarding their employees?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee shall maintain in full force and effect during the Term and any Renewal Term, at its sole expense, such insurance coverages as Franchisor, in Franchisor’s sole discretion, may from time to time require, including, but not limited to: (a) commercial general liability and property damage insurance, including personal and bodily injury liability, contractual liability, and owners’ and contractors’ protective insurance coverage with respect to the activities conducted by Franchisee and any employee, agent 4908-1371-6037.2 Franchise Agreement 4/22 or other person performing work on behalf of Franchisee with respect to the Franchised Location or the Franchised Business, with a policy limit of not less than $2,000,000 per occurrence or such greater am
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, a 1-800-GOT-JUNK? franchisee is required to maintain certain insurance coverages that extend to their employees. Specifically, franchisees must have commercial general liability and property damage insurance, which includes personal and bodily injury liability, contractual liability, and owners’ and contractors’ protective insurance. This insurance coverage must apply to the activities conducted by the franchisee and any employee, agent, or other person performing work on behalf of the franchisee with respect to the Franchised Location or the Franchised Business. The policy limit for this insurance must be no less than $2,000,000 per occurrence.
This requirement means that a 1-800-GOT-JUNK? franchisee needs to secure and maintain a substantial insurance policy to protect against potential liabilities arising from the actions of their employees or other representatives. This includes coverage for injuries, damages, or contractual breaches that may occur during the operation of the franchise. The $2,000,000 minimum policy limit indicates the potential for significant financial risk if adequate insurance is not in place.
Franchisees should carefully review their insurance needs and ensure that their policies meet the franchisor's requirements. They should also understand the scope of their coverage and any exclusions that may apply. Consulting with an insurance professional is advisable to ensure that they have adequate protection for their business and employees. Failing to maintain the required insurance could result in a breach of the franchise agreement and potential legal and financial repercussions.