Within how many days of receiving insurance certificates must an Aplus franchisee provide proof of insurance coverage to the Franchisor?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall provide to Franchisor proof of the endorsements along with insurance certificates and/or other proof of coverage to Franchisor requires. Upon issuance of a policy and renewal of said policy, Franchisee shall provide to Franchisor, certificates of insurance showing compliance with the foregoing requirements within fifteen (15) days of Franchisee's receipt of such certificates. Such certificates shall state that said policy or policies shall not be canceled or altered without at least thirty (30) days' prior written notice to Franchisor and shall reflect proof of payment of premiums.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a franchisee must provide proof of insurance coverage to Aplus within fifteen (15) days of receiving their insurance certificates. This proof must be in the form of insurance certificates or other documentation that Aplus requires. These certificates must confirm compliance with Aplus's insurance requirements.
The insurance certificates provided to Aplus must also include specific stipulations. They must state that the insurance policies cannot be canceled or altered without at least thirty (30) days' prior written notice to Aplus. Additionally, the certificates must reflect proof that the premiums for the insurance policies have been paid.
Failure to maintain the required insurance coverage can have significant consequences for an Aplus franchisee. If a franchisee does not maintain the required insurance, Aplus has the right, but not the obligation, to procure the insurance coverage themselves. The franchisee would then be responsible for immediately paying the premiums, along with a reasonable fee for Aplus's expenses in procuring the insurance, up to a maximum of $1,000.