After obtaining a quote from InterWest Insurance Services, can an Apricot Lane franchisee solicit quotes from other insurance companies?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
All of your insurance policies must meet our standards and specifications stated in the Confidential Operations Manual.
Currently we have designated InterWest Insurance Services as our preferred provider.
After obtaining a quote for required insurance from InterWest Insurance Services you may solicit quotes from other insurance companies as well.
InterWest will then be given the right to match any other quotes and you are required to use InterWest Insurance Services if it provides competitive prices to you.
We do not collect any rebate for insurance sold to you by InterWest Service.
You must maintain insurance protecting you and COUNTRY VISIONS, their officers, directors, partners and employees against any loss, liability, personal injury, death or property damage or other expense connected with the Franchised Business, specifying COUNTRY VISIONS as an additional insured.
These policies must be written by an insurance company licensed in the State in which the Franchisee operates and having at least an "A" rating classification as indicated in Best's Key rating guide in accordance with standards and specifications stated in the Confidential Operations Manual or otherwise.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees can solicit insurance quotes from other companies after first obtaining a quote from InterWest Insurance Services, which is Apricot Lane's preferred provider. However, InterWest Insurance Services has the right to match any other quotes the franchisee receives. If InterWest provides competitive pricing, the franchisee is required to use InterWest Insurance Services. This arrangement allows franchisees to explore options while potentially benefiting from a pre-negotiated relationship between Apricot Lane and InterWest.
The insurance policies obtained by Apricot Lane franchisees must meet specific standards detailed in the Confidential Operations Manual. These 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. At a minimum, franchisees must carry several types of insurance, including comprehensive general liability insurance ($1,000,000 per occurrence, $2,000,000 general aggregate), automobile liability coverage ($1,000,000 combined single coverage), and an umbrella policy ($1,000,000 excess coverage).
Additional insurance requirements include worker's compensation, personal property insurance ($75,000 or greater), and business interruption insurance (greater of actual loss sustained or $50,000). Franchisees must also maintain stop gap coverage, stretch endorsements for crime, employee dishonesty, and accounts receivable, as well as any other insurance required by state or local laws. Apricot Lane retains the right to modify these minimum insurance limits with written notice. If a franchisee fails to maintain the required insurance, Apricot Lane can procure the coverage and charge the franchisee, plus a reasonable fee.
Apricot Lane does not receive any rebates for insurance sold to franchisees by InterWest Service. Franchisees must ensure that their insurance protects both themselves and Apricot Lane, including their officers, directors, partners, and employees, against any loss, liability, personal injury, death, property damage, or other expense connected with the franchised business. Apricot Lane must be specified as an additional insured on these policies. This comprehensive insurance requirement aims to protect both the franchisee and the franchisor from potential liabilities and financial losses.