Does an All Team franchisee's failure to maintain insurance relieve them of any contractual responsibility or obligation under the Franchise Agreement?

According to All Team's 2025 Franchise Disclosure Document, a franchisee's failure to maintain required insurance coverage does not relieve them of any contractual responsibility, obligation, or liability under the Franchise Agreement. All Team requires franchisees to purchase and maintain specific insurance coverages throughout the term of the agreement. These coverages include Workers' Compensation Insurance, General Liability Insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 in the general aggregate, Personnel Consultant's Errors and Omission Insurance in the amount of $1,000,000, Non-owned automobile insurance with a combined single limit of liability for each accident of not less than $1,000,000, Employee Practices Liability insurance with minimum limits of $2,000,000 per claim and in the aggregate, Employee Dishonesty/Blanket Crime Insurance covering loss to customer property caused by temporary workers with a minimum limit of $1,000,000 per occurrence, and a Blanket Fidelity Bond for temporary help services with $10,000 limit of liability. All Team has the right to increase the types and amounts of insurance coverage as it may reasonably require.

If a franchisee fails to maintain the required insurance, All Team has the option to procure the insurance on the franchisee's behalf and seek reimbursement for the costs incurred. Additionally, All Team will charge a penalty of $500 per month and prohibit the franchisee from operating the agency until the required Certificate of Insurance is received.

It is the franchisee's responsibility to maintain adequate insurance coverage at all times during and after the term of the agreement, recognizing that the specified insurance levels are merely minimum requirements. Franchisees are advised to consult with their advisors to determine if additional insurance is necessary. This requirement ensures that All Team franchisees remain compliant with the Franchise Agreement and are protected from potential liabilities, regardless of insurance status.