Is the Annex Brands franchisee responsible for the expense of obtaining and maintaining the required insurance policies?

urs a week.

• I. INSURANCE. During the term of the Franchise, Franchisee will obtain and maintain in force, at Franchisee's sole expense, under policies of insurance issued by carriers with no less than a Best's rating of A, the following:
  • 1. Comprehensive general, public, and product liability insurance, against claims for bodily and personal injury, death, and property damage caused by or occurring

in conjunction with the operation of the Center or otherwise in conjunction with the conduct of business by Franchisee under this Agreement, under 1 or more policies of insurance containing a minimum of $2,000,000 per occurrence and $4,000,000 aggregate liability coverage.

• 1. Notary professional liability insurance of at least $500,000 or the maximum permitted by the state if less than $500,000.
• 1. Property insurance against any claims at the Center included within the classification "Causes of Loss Special Form," including vandalism, malicious mischief and theft. Such policies will include coverage in an amount not less than 100% of the actual replacement cost thereof. Said coverage will also include property of others in Franchisee's care, custody or control with a minimum limit of $400,000, and employee dishonesty coverage with a minimum limit of $25,000.
• 1. Business interruption coverage on an "actual loss sustained" basis for a period of not less than 24 months or the maximum permitted by the state if less than 24 months.
• 1. Motor vehicle liability insurance policies covering each and every owned or non-owned vehicle (owned, non-owned, leased, hired, rented or borrowed) operated by or on behalf of the business conducted under the Agreement and providing protection for injury caused to person or property by such vehicles in the minimum amount of $2,000,000.
• 1. Any workers' compensation, employer's liability or comparable insurance required by the law of the jurisdiction where the Center is located, and all other insurance coverage that Franchisor periodically requires.

For a flex Center that chooses to provide expanded services of household moving and other relocation products and services, Franchisee must also obtain and maintain in force, as applicable:

• 1. "Bailee's" coverage insurance policy that is in addition to small parcel, freight or transit damage insurance. The policy must include coverage of personal property of others in an insured's care, custody and control that is temporarily at an insured's Center with a minimum limit of $400,000, coverage of personal property of others in an insured's care, custody and control at another location with a minimum limit of $300,000, and coverage that includes the transportation of personal property of others while in an insured's auto or truck with a minimum limit of $400,000.
• 1. If you provide expanded services of household moving and other relocation products and services: i) employment practices insurance (including sexual harassment, wrongful termination and discrimination coverage) in the amount of at least $500,000 for each incident and at least $1,000,000 in the aggregate; and ii) umbrella insurance (covering general liability, auto and employer's liability) with a minimum limit of at least $2,000,000.

For standard, flex and express Centers, coverage will be issued using the correct company classifications for businesses, such as Centers specializing in selling business support, mailbox rental (physical and virtual), package receiving, postal, printing, copying, packaging, shipping, office supply, passport photo, notary, fingerprinting, and related products and services.

Franchisor may periodically increase the minimum amounts of coverage required under the insurance policies and require different or additional kinds of insurance at any time, including

excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. All insurance policies must provide for 30 days' prior written notice to Franchisor of any material modification, cancellation or expiration of a policy. Nothing contained in this Agreement will be construed or considered an undertaking or representation by Franchisor that such insurance and bonding as may be required to be obtained by Franchisee, or by Franchisor for Franchisee, will insure Franchisee against any or all insurable risks of loss which may or can arise out of or in connection with the operation of the Center.

Franchisee's obligations to maintain insurance coverage as described in this Agreement will not be affected in any manner by reason of any separate insurance maintained by Franchisor, nor will the maintenance of such insurance relieve Franchisee of any obligations under Section 7 of this Agreement. Except for workers' compensation, employer's liability, comparable and/or employment practices insurance policies, all insurance policies maintained by Franchisee must list Franchisor, its affiliates and the indemnities specified in Subsection 7.B of this Agreement as additional insureds. Franchisee must submit to Franchisor at least annually or whenever the insurance is modified, a certificate of insurance for and a copy of each policy.

If Franchisee fails or refuses to acquire and maintain insurance coverage conforming to the standards and limits prescribed by Franchisor, or to furnish satisfactory evidence of his, her or their insurance coverage, at its option and in addition to its other rights and remedies under this Agreement, Franchisor may but is not required to obtain, through agents and insurance companies of Franchisor's choosing, such insurance coverage on behalf of Franchisee as is necessary to meet Franchisor's standards. Franchisee will fully cooperate with Franchisor in its effort to obtain such insurance policies, will promptly execute all forms or instruments required to obtain any such insurance and will allow any inspections of the Center which are required to obtain the insurance.

Source: Item 22 — Contracts (FDD pages 109–110)