Does Aplus guarantee that its current levels of insurance protection will remain available at reasonable prices in the future?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
We maintain liability insurance with insurers in amounts and with coverage and deductibles management believes are reasonable and prudent, and which are generally accepted in the industry. However, there can be no assurance that the levels of insurance protection currently in effect will continue to be available at reasonable prices or that such levels will remain adequate to protect us from material expenses related to personal injury or property damage in the future.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus cannot guarantee that the current levels of insurance protection will remain available at reasonable prices in the future. Aplus maintains liability insurance with insurers in amounts and with coverage and deductibles management believes are reasonable and prudent, and which are generally accepted in the industry. However, this does not assure franchisees that these levels will remain constant.
This means that franchisees could potentially face higher insurance costs or reduced coverage in the future. Factors influencing insurance costs and coverage levels can include changes in the insurance market, the claims history of Aplus locations, and broader economic conditions. Franchisees need to be aware that insurance expenses could increase and impact their profitability.
Prospective Aplus franchisees should discuss insurance requirements and potential cost fluctuations with existing franchisees and the franchisor. Understanding the factors that could affect insurance costs will help franchisees better prepare for and manage this aspect of their business. It is also important to periodically review insurance coverage to ensure it remains adequate and cost-effective.