financial_threshold
If Aplus procures insurance on behalf of the franchisee, what is the maximum administrative fee the franchisee will be charged?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
given to Franchisor in the event of material alteration to or cancellation or non-renewal of the coverages evidenced by such certificates.
- 7.2.2. If you fail to procure or maintain these minimum insurance requirements, Franchisor or its designee has the right (but is not required) to procure such insurance on your behalf. Such right shall be in addition to and not in lieu of any other rights or remedies available to Franchisor. If thi
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee fails to maintain the minimum required insurance, Aplus has the right to procure insurance on the franchisee's behalf, but is not required to do so.
If Aplus does obtain insurance for the franchisee, the franchisee is responsible for reimbursing Aplus for the cost of the premium.
In addition to the premium cost, Aplus will charge the franchisee an administrative fee. This fee will not exceed $1,000.
Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.