What information must the Certificate of Insurance furnished by an Apricot Lane franchisee include?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee must furnish a Certificate of Insurance to Apricot Lane for approval within 60 days of signing the Franchise Agreement, but no later than when the franchisee acquires an interest in the real property for the Franchised Business. This certificate must demonstrate compliance with Apricot Lane's insurance requirements.
The Certificate of Insurance must state that the insurance policy or policies will not be canceled or altered without at least 30 days prior written notice to Apricot Lane. Additionally, the certificate must reflect proof of payment of premiums, ensuring that the insurance coverage is active and up-to-date.
It is important to note that maintaining the required insurance and fulfilling the obligations related to insurance does not relieve the franchisee of liability under the indemnity provision outlined in the Franchise Agreement. Apricot Lane retains the right to modify the minimum insurance limits as needed, providing written notice to the franchisee or through updates to the Confidential Operations Manual.