Who pays for the insurance policies required by Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) You shall maintain in full force and effect at all times during the term of this Agreement, at your expense, an insurance policy or policies protecting you, Amorino and its Affiliates, and their respective partners, shareholders, directors, agents, and employees, against any demand or claim with respect to personal and bodily injury, death, or property damage, or any loss, liability, or expense arising or occurring upon or in connection with the operation of the Store and the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are responsible for covering the costs of the insurance policies required for their franchised business. The FDD specifies that franchisees must maintain insurance policies at their own expense throughout the term of the agreement.
Amorino mandates that franchisees obtain and maintain various insurance policies to protect themselves, Amorino, its affiliates, and their respective personnel against potential claims related to personal injury, death, property damage, losses, liabilities, or expenses arising from the operation of the store. These policies must be written by insurers licensed and admitted in the state where the franchised business is located and have a rating of "A" or better according to Best's Key Rating Guide.
If a franchisee fails to procure or maintain the minimum insurance requirements, Amorino has the right, but not the obligation, to procure such insurance on the franchisee's behalf. In such cases, the franchisee is required to reimburse Amorino for the cost of the premium upon demand. This ensures that the necessary insurance coverage is in place, although the financial burden ultimately falls on the franchisee.