Is stop gap coverage required for Apricot Lane franchisees?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
anual or otherwise. At a minimum, you must carry: (i) comprehensive general liability insurance, including broad form contractual liability, broad form property damage, personal injury, completed operations, products liability and fire damage coverage in the amount of $1,000,000, combined single limit per occurrence, $2,000,000 general aggregate, or any greater amount required by the lessor; (ii) automobile liability coverage of owned, non-owned and hired vehicles, with coverage in amounts not less than $1,000,000, combined single coverage; (iii) an "umbrella" policy providing excess coverage in amounts not less than $1,000,000 which must be in excess of general liability, auto and employers liability; (iv) worker's compensation insurance in amounts required by applicable law; (v) personal property insurance coverage in the amount of $75,000 or greater if you open with a higher inventory level; (vi) business interruption insurance in an amount which is the greater of the actual loss sustained or $50,000; (vii) stop gap coverage where applicable; (viii) stretch endorsements for crime, employee dishonesty and accounts receivable; and (ix) any other insurance required by State or locality in which the Franchised
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 must carry several types of insurance coverage. Among these is stop gap coverage, but the requirement is conditional. The FDD states that franchisees must carry "stop gap coverage where applicable." This implies that whether or not stop gap coverage is required depends on the specific circumstances and legal requirements of the franchisee's location.
In addition to stop gap coverage, Apricot Lane franchisees must maintain other insurance policies, including comprehensive general liability insurance ($1,000,000 per occurrence, $2,000,000 general aggregate), automobile liability coverage ($1,000,000 combined single coverage), an umbrella policy ($1,000,000 excess coverage), worker's compensation insurance (as required by law), personal property insurance ($75,000 or greater), and business interruption insurance (greater of actual loss sustained or $50,000). They must also obtain stretch endorsements for crime, employee dishonesty, and accounts receivable, as well as any other insurance required by the state or locality.
The insurance policies must be written by a licensed insurance company in the state where the Apricot Lane franchise operates, with at least an "A" rating classification as indicated in Best's Key rating guide. COUNTRY VISIONS may procure insurance coverage for the franchisee if they fail to do so and charge the franchisee for the cost plus a reasonable fee. Franchisees should consult with an insurance professional to determine if stop gap coverage is applicable in their specific situation and to ensure they meet all of Apricot Lane's insurance requirements.