Can Apricot Lane modify the required insurance specifications for franchisees?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
CHISOR 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.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, Apricot Lane can modify the required insurance specifications for franchisees. The franchisee must acquire and maintain insurance policies that protect both the franchisee and Apricot Lane against loss or liability. These policies include commercial general liability, products liability coverage, 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 in these policies.
The specific insurance requirements are provided in writing in the Confidential Operations Manual or otherwise. Apricot Lane retains the right to modify these insurance specifications as it deems necessary or appropriate in its reasonable discretion. The insurance policies must be written by an insurance company licensed in the state where the franchisee operates and have an "A" Rating Classification as indicated in Best's Key Rating Guide, in accordance with the standards and specifications set forth in the Confidential Operations Manual or in writing.
The franchisee must furnish a Certificate of Insurance to Apricot Lane for approval within 60 days of signing the agreement, but no later than the date the franchisee acquires an interest in the real property. 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. The certificate must also reflect proof of premium payments. Minimum insurance limits may be modified by Apricot Lane from time to time, as conditions require, through written notice to the franchisee or modifications to the Confidential Operations Manual.