Under what condition is an Annex Brands franchisee required to carry employment practices insurance, and what are the minimum coverage amounts required?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
) 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 $2,000,00
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, an Annex Brands franchisee is required to obtain and maintain employment practices insurance if they operate a flex Center and choose to provide expanded services of household moving and other relocation products and services. This insurance must include coverage for sexual harassment, wrongful termination, and discrimination.
The minimum coverage required for employment practices insurance is $500,000 for each incident and $1,000,000 in the aggregate. Additionally, these franchisees must also maintain umbrella insurance covering general liability, auto, and employer's liability with a minimum limit of $2,000,000.
Annex Brands may periodically increase the minimum amounts of coverage required under the insurance policies or require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Franchisees must provide Franchisor with 30 days' prior written notice of any material modification, cancellation, or expiration of a policy. Franchisees must submit to Franchisor at least annually or whenever the insurance is modified, a certificate of insurance for and a copy of each policy.