Where can I find the specific insurance requirements for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISOR may in its discretion make such field visits provided that FRANCHISOR as a condition of making the requested field visit may require FRANCHISEE to pay all travel and related expenses associated the visit and provide additional information upon request.
SECTION 16: INSURANCE
A. Policy Requirements
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- FRANCHISEE shall procure at its expense and maintain in full force and effect during the term of this Agreement, an insurance policy or policies protecting FRANCHISEE and FRANCHISOR and its officers, directors, partners and employees, against loss or liability in such types and amounts of coverage as FRANCHISOR may reasonably require for its own and FRANCHISEE's protection, including but not limited to commercial general liability and products liability coverage, all risk coverage on the Franchised Business, business interruption insurance, automobile liability insurance and workers' compensation insurance. FRANCHISOR shall be named an additional insured in such policy or policies. Required insurance specifications shall be provided to FRANCHISEE in writing in the Confidential Operations Manual or otherwise and may be modified from time to time, as FRANCHISOR deems necessary or appropriate in its reasonable discretion.
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- Such policy or policies shall be written by an insurance company licensed in the state in which FRANCHISEE operates and having at least an "A" Rating Classification as indicated in Best's Key Rating Guide in accordance with standards and specifications set forth in the Confidential Operations Manual or otherwise in writing.
B. Certificate of Insurance
The insurance afforded by the policy or policies respecting liability shall not be limited in any way by reason of any insurance that may be maintained by FRANCHISOR. Within sixty (60) days of the signing of this Agreement, but in no event later than the date on which FRANCHISEE acquires an interest in the real property on which it will develop and operate the Franchised Business, a Certificate of Insurance showing compliance with the foregoing requirements shall be furnished by FRANCHISEE to FRANCHISOR for approval. Such certificate shall state that said policy or policies will not be canceled or altered without at least thirty (30) days prior written notice to FRANCHISOR and shall reflect proof of payment of premiums. Maintenance of such insurance and the performance by FRANCHISEE of the obligations under this paragraph shall not relieve FRANCHISEE of liability under the indemnity provision set forth in this Agreement. Minimum limits as required above may be modified from time to time, as conditions require, by written notice to FRANCHISEE or by modifications to the Confidential Operations Manual.
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Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the specific insurance requirements are detailed in the Confidential Operations Manual or in writing from the franchisor. Franchisees are required to obtain and maintain insurance policies that protect both the franchisee and Apricot Lane, including its officers, directors, partners, and employees. These policies must cover potential losses or liabilities, including commercial general liability, products liability, all-risk coverage on the franchised business, business interruption insurance, automobile liability insurance, and workers' compensation insurance. Apricot Lane must be named as an additional insured on these policies.
The insurance policies must be written by a company licensed in the state where the franchisee operates and have an "A" Rating Classification or better, as indicated in Best's Key Rating Guide. Franchisees must provide Apricot Lane with a Certificate of Insurance within 60 days of signing the Franchise Agreement, and no later than when the franchisee acquires an interest in the real property for the business. This certificate must show compliance with the insurance requirements and state that the policies will not be canceled or altered without at least 30 days' prior written notice to Apricot Lane.
It is important to note that Apricot Lane can modify the required insurance specifications and minimum limits as necessary, either through written notice or updates to the Confidential Operations Manual. If a franchisee fails to maintain the required insurance coverage, Apricot Lane has the right, but not the obligation, to procure the necessary insurance and charge the franchisee for the costs and expenses incurred. Franchisees should consult the Confidential Operations Manual and any written notices from Apricot Lane to ensure they meet all current insurance requirements.