When must a 1 800 Packouts franchisee provide a copy of the certificate of insurance?

According to 1 800 Packouts's 2025 Franchise Disclosure Document, a franchisee must provide a copy of the certificate or other evidence of insurance procurement, renewal, or extension within 30 days after signing the Franchise Agreement and each year thereafter. This requirement ensures that the franchisee maintains the necessary insurance coverage throughout the term of the agreement.

1 800 Packouts also has the right to modify the required coverage amounts or types of insurance at any time to reflect changes such as inflation, new risks, changes in law, or higher damage awards. The insurance policies must name 1 800 Packouts (including its officers, directors, and employees) as additional insureds and include a waiver of subrogation rights against 1 800 Packouts. Additionally, 1 800 Packouts must receive 30 days' advance written notice of any material modification, cancellation, termination, or expiration of the policy.

This requirement is fairly standard in franchising, as franchisors need to protect their brand and business from potential liabilities arising from franchisee operations. Franchisees should ensure they understand the specific insurance requirements and maintain compliance to avoid potential breaches of the franchise agreement. The franchisee bears the responsibility of ensuring that the insurance policies meet 1 800 Packouts's requirements and are issued by insurance carriers rated not less than "A-" by A.M. Best Company.