Can an Afuri Ramen Dumpling franchisee 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 aggr
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 requirements set by the brand. While franchisees must obtain and maintain the minimum insurance coverage required by Afuri Ramen Dumpling and the franchise's lease, they are not restricted from exceeding these minimums. This flexibility allows franchisees to tailor their insurance coverage to their specific needs and risk tolerance.
The minimum insurance coverages that Afuri Ramen Dumpling requires include broad form commercial general liability coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate for each coverage. Additionally, franchisees must maintain all risk property insurance, loss of income insurance, worker's compensation, and other coverages.
While Afuri Ramen Dumpling permits franchisees to purchase more coverage, they also retain the right to periodically increase the amounts of coverage required under such insurance policies and require different or additional kinds of insurance at any time. This may be due to inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.