What is the required coverage for business interruption insurance for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase and maintain in full force and effect, at your expense and from a company we accept, insurance that insures both you and us, our affiliates and any other persons we designate by name.
The insurance policy or policies must be wr
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Alloy does not specify the required coverage amount for business interruption insurance. However, the FDD does state that franchisees must purchase and maintain insurance that covers both the franchisee and Alloy, its affiliates, and any other persons Alloy designates.
The FDD indicates that Alloy may modify the required minimum insurance limits and require additional insurance coverages by providing written notice to the franchisee. This flexibility allows Alloy to adapt to changing circumstances, industry standards, and potential liabilities.
Prospective Alloy franchisees should inquire with the franchisor about the specific requirements for business interruption insurance, including the minimum coverage amounts, any specific policy endorsements, and the process for obtaining approved insurance providers. Understanding these requirements is crucial for ensuring adequate protection against potential business disruptions and for maintaining compliance with the franchise agreement.