Does Afuri Ramen Dumpling allow franchisees to purchase more insurance coverage than the minimum required?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
s Manual.
Insurance
You must obtain and maintain at your own expense the minimum insurance coverage that we and the Franchise's lease periodically require, and you must meet the other insurance-related obligations in the Franchise Agreement. You may elect to purchase more coverage than we require. The coverages listed below reflect only minimum coverage limits for each franchise location. As of the issuance date of this disclosure document, we require you to maintain the following coverages:
- (a) broad form commercial general liability coverage, on an occurrence form, including: errors and omissions, food borne illness, dram shop/liquor liability, premises and operations, products and completed operations, personal and advertising injury, broad form contractual, and employers liability; against claims for bodily injury, personal injury, including death, and property damage with minimum limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate for each coverage;
- 18 Afuri Franc
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees have the option to purchase more insurance coverage than the minimum required by the franchisor. While Afuri Ramen Dumpling mandates specific minimum insurance coverages to protect the brand and its franchisees, it does not restrict franchisees from obtaining additional coverage if they deem it necessary or prudent for their individual circumstances. This flexibility allows franchisees to tailor their insurance protection to address specific local risks or personal preferences.
Afuri Ramen Dumpling specifies the types and minimum amounts of insurance coverage franchisees must maintain, including commercial general liability, property insurance, loss of income coverage, worker's compensation, and other essential protections. These minimum requirements ensure that each franchise location has a baseline level of protection against common risks such as property damage, liability claims, and business interruption. The franchisor also retains the right to periodically increase the required coverage amounts or types of insurance to reflect changes in the legal or business environment.
While franchisees can purchase additional coverage beyond the minimums, they must still adhere to Afuri Ramen Dumpling's stipulations regarding insurance carriers and policy terms. This includes ensuring that the insurance carrier is authorized to do business in the state where the franchise is located and maintains a minimum rating of A-X with A.M. Best. Additionally, Afuri Ramen Dumpling and its affiliates must be named as additional insureds on the policies, and the policies must include provisions for notification of any modifications or cancellations. These requirements ensure that the franchisor is adequately protected and informed about the franchisee's insurance coverage.