Which section of the 360 Painting Franchise Agreement outlines the insurance obligations of the franchisee?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.20 Responsibility for Contractors. Franchisee agrees to cause any third party subcontractors engaged by Franchisee to perform work on behalf of Franchisee in respect of the Business to comply with all applicable requirements of this Section 9, including but not limited to the quality and performance standards required of Franchisee, as well as the insurance requirements set forth in Section 16.2 herein.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 26–27)
What This Means (2025 FDD)
According to the 2025 FDD, Section 16.2 of the 360 Painting Franchise Agreement outlines the insurance requirements for franchisees. Specifically, Section 9.20 of the agreement states that franchisees must ensure any third-party subcontractors they engage comply with the insurance requirements detailed in Section 16.2.
This means that as a 360 Painting franchisee, you are not only responsible for maintaining your own insurance coverage as specified in Section 16.2, but you also have to make sure that any subcontractors you hire to perform work for your 360 Painting business meet those same insurance standards. This adds an extra layer of oversight and responsibility for the franchisee.
It is important for prospective franchisees to carefully review Section 16.2 of the Franchise Agreement to understand the specific types and amounts of insurance coverage required, as well as the implications of failing to maintain adequate insurance. This will help ensure compliance and protect both the franchisee and the franchisor from potential liabilities.