Can Amorino modify the minimum insurance coverage requirements?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
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, Amorino has the authority to modify the minimum insurance coverage requirements for franchisees. Amorino can unilaterally change these requirements each year, which may include increasing the minimum coverage to account for inflation or changing market conditions.
This means that a prospective Amorino franchisee needs to be aware that their insurance costs could increase over time due to these modifications. It is important to factor in potential future increases in insurance premiums when assessing the overall financial viability of the franchise. Franchisees must deliver certificates of insurance to Amorino at least 10 days before the insurance is required and at least 30 days before any policy expires.
If a franchisee fails to maintain the required insurance coverage, Amorino has the right to obtain the necessary insurance on behalf of the franchisee. The franchisee would then be responsible for reimbursing Amorino for the premium costs and any associated expenses incurred in acquiring the insurance. This underscores the importance of maintaining continuous and adequate insurance coverage as mandated by Amorino to avoid potential financial penalties and ensure compliance with the franchise agreement.