What happens if an Amorino franchisee fails to maintain the required insurance coverage?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
At least 10 days before you are required to carry insurance, and after that at least 30 days before the expiration of any policy, you must deliver to us certificates of insurance evidencing the proper types and minimum amounts of required coverage, and evidence of the waiver. If you fail to maintain the required insurance, we or our designee may obtain the insurance for you and charge and demand reimbursement of the premium costs and costs of acquiring the insurance. Each year Amorino may unilaterally modify the insurance minimum coverage requirements which may include an increase to the minimum coverage requirements to reflect changes in inflation or as market conditions warrant.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance coverage, Amorino or its designee has the option to obtain the necessary insurance on behalf of the franchisee. The franchisee is then responsible for reimbursing Amorino for the premium costs and any expenses incurred in acquiring the insurance.
Amorino requires franchisees to provide certificates of insurance at least 10 days before the insurance is initially required and at least 30 days before any policy's expiration. This allows Amorino to verify that the franchisee has the appropriate coverage and provides a window to take action if the franchisee's insurance lapses or is insufficient.
This provision protects both the franchisee and Amorino from potential liabilities and financial losses due to unforeseen events. By allowing Amorino to secure insurance on the franchisee's behalf, it ensures continuous coverage and compliance with the franchise agreement, although at the franchisee's expense. Additionally, Amorino retains the right to modify the minimum insurance coverage requirements annually to reflect changes in inflation or market conditions, which may lead to increased costs for the franchisee.