Is unemployment insurance required for an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- (l) unemployment insurance and state disability as required by governing laws.
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, franchisees are required to obtain unemployment insurance and state disability coverage as mandated by governing laws. Additionally, franchisees must secure other insurance types, including commercial general liability coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate, all-risk property insurance, loss of income insurance, worker's compensation, and employment practices liability with limits not less than $100,000.
The specific amount of coverage required for unemployment insurance and state disability is determined by the relevant state laws. It is the franchisee's responsibility to stay informed about these legal requirements and maintain the necessary coverage.
Afuri Ramen Dumpling also retains the right to periodically increase the required coverage amounts or mandate different or additional types of insurance. This could be due to factors such as inflation, the identification of new risks, changes in the law, or higher damage awards. Franchisees must comply with these changes to ensure they have adequate protection and meet the franchisor's requirements.