Under what circumstances can Afuri Ramen Dumpling require different or additional kinds of insurance?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
You shall also maintain such additional insurance as is necessary to comply with all legal requirements concerning insurance as well as any other insurance required by your landlord. We may periodically increase the amounts of coverage required under such insurance policies and require different or additional kinds of insurance at any time, including higher liability limits, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.
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, Afuri Ramen Dumpling may periodically increase the amounts of coverage required under insurance policies and may also require different or additional kinds of insurance at any time. This includes potentially mandating higher liability limits.
These changes can be implemented to reflect several factors. These factors include inflation, the identification of new risks associated with the business, changes in laws or standards of liability, higher damage awards resulting from legal cases, or other relevant changes in circumstances that could impact the financial exposure of the franchise system.
This provision allows Afuri Ramen Dumpling to adapt insurance requirements to protect the brand and its franchisees from evolving risks and liabilities. It is fairly standard practice in franchising to allow the franchisor to modify insurance requirements to keep pace with changing legal and economic conditions. Prospective franchisees should understand that their insurance costs could increase over time if Afuri Ramen Dumpling deems it necessary to adjust coverage levels or types.