What notice must the insurance policy provide to Aerus in advance of cancellation?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall, at its expense, procure upon execution of this Agreement, and shall maintain in full force and effect at all times during the Term, an insurance policy or policies protecting Company and Franchisee and each party's respective permitted successors and assigns, officers, members, directors, shareholders, partners, agents, representatives, independent contractors, employees and lenders against any demand or claim with respect to personal injury, death or property damage, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business. Such policy or policies (1) shall be written by a responsible carrier or carriers reasonably acceptable to Company (e.g., having been assigned an "A" rating or its equivalent by a recognized insurance rating service) who are duly licensed by the appropriate governmental authorities, (2) shall name Company and such of Company's Affiliates as may be required from time to time, as an additional insureds, (3) shall include, at a minimum, such coverages with such limits as shall be set forth from time to time in the Manuals, and (4) shall require or provide for notice of any cancellation or non-renewal to be given to Company at least thirty (30) days in advance of such occurrence. Franchisee shall submit to Company, or its designee, all certificates of insurance (including a copy of the original policy), insurance policy endorsements (including a copy of the original policy), notices of cancellation endorsement, and such other evidence as Company may prescribe to confirm that all required insurance coverage is in effect.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the insurance policy obtained by the franchisee must provide Aerus with at least thirty (30) days' advance written notice of any cancellation or non-renewal.
This requirement ensures that Aerus is informed of any potential lapse in the franchisee's insurance coverage, allowing them time to take necessary actions to protect their interests. These actions could include requiring the franchisee to reinstate the policy or securing alternative coverage themselves, as is their right under the agreement if the franchisee fails to maintain the required insurance.
This stipulation is a standard practice in franchising, as it protects the franchisor from potential liabilities and ensures that all franchisees maintain adequate insurance coverage, which is crucial for brand consistency and risk management across the Aerus franchise system. The franchisee is also responsible for submitting certificates of insurance, policy endorsements, and cancellation notices to Aerus to confirm that the required coverage is in effect.