Is the Manufacturer required to maintain Commercial Comprehensive General Liability insurance with completed operations coverage during the construction of the 7 Brew unit?

According to the 2025 7 Brew Franchise Disclosure Document, the Manufacturer is required to maintain certain insurance coverage during the construction of the Unit. Specifically, the Manufacturer must have and maintain Worker's Compensation insurance, Commercial Comprehensive General Liability insurance with completed operations coverage, and Builder's Risk and/or casualty insurance. This insurance must cover the full replacement cost of the Unit and protect both the Manufacturer and the Owner (franchisee) throughout the construction process.

This requirement ensures that both 7 Brew and the franchisee are protected from potential liabilities and risks associated with the construction of the unit. The Commercial Comprehensive General Liability insurance with completed operations coverage is particularly important as it extends beyond the active construction phase, covering potential issues that may arise after the unit is completed and operational. Builder's Risk and/or casualty insurance further safeguards against physical damage or loss to the unit during construction.

For a prospective 7 Brew franchisee, this representation provides assurance that the Manufacturer has adequate insurance coverage in place. It is advisable for the franchisee to confirm the specifics of these insurance policies, including coverage amounts and terms, to fully understand the extent of their protection during the construction phase. This due diligence can help mitigate potential financial risks and ensure a smoother construction process.