Who is responsible for the expense of procuring insurance for an All States M.E.D. franchise?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
ritten reports detailing any problems or concerns discovered during any such visit and outlining any required or suggested changes or improvements in the operations of the Franchised Business. A copy of any such written report may be provided to Franchisee. Franchisee shall implement any required changes or improvements as required by Franchisor with time being of the essence.
15. INSURANCE
15.1 Types and Amounts of Coverage
At its sole expense, Franchisee shall procure within ten (10) days of the Effective Date, and maintain in full force and effect during the term of this Agreement, the types of insurance as we may specify in the Operations Manual or otherwise and any other insurance as may be required by applicable law or by Franchisee's Landlord or Lessor. All policies (except any workers' compensation insurance) shall expressly name Franchisor as an additional insured or loss payee and all shall contain a waiver of all subrogation rights against Franchisor and its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the franchisee is responsible for the expense of procuring insurance. Specifically, the franchisee must obtain the required insurance within ten days of the effective date of the Franchise Agreement and maintain it throughout the agreement's term.
This means that as an All States M.E.D. franchisee, you will need to budget for and pay for all insurance premiums. The types and amounts of coverage will be specified in the Operations Manual or otherwise communicated by All States M.E.D., and may also be dictated by applicable law or the franchisee's landlord or lessor.
Furthermore, all insurance policies (except workers' compensation) must name All States M.E.D. as an additional insured or loss payee and include a waiver of subrogation rights against All States M.E.D. If a franchisee fails to maintain the required insurance, All States M.E.D. has the right, but not the obligation, to procure the insurance and charge the premiums and associated expenses to the franchisee, payable immediately upon notice.