Under what conditions can Country Visions procure insurance coverage for an Apricot Lane franchisee?

According to Apricot Lane's 2025 Franchise Disclosure Document, Country Visions, the franchisor, has the right to procure insurance coverage for a franchisee if the franchisee fails to obtain and maintain the required insurance policies. In such a case, Country Visions can secure the necessary insurance and charge the franchisee for the cost of the coverage, along with a reasonable fee.

Apricot Lane requires franchisees to maintain several types of insurance, including comprehensive general liability insurance of at least $1,000,000 per occurrence and $2,000,000 in general aggregate, automobile liability coverage of $1,000,000, an umbrella policy providing excess coverage of at least $1,000,000, worker's compensation insurance, personal property insurance coverage of at least $75,000, and business interruption insurance of either the actual loss sustained or $50,000, whichever is greater. The franchisee must also obtain stop gap coverage where applicable, stretch endorsements for crime, employee dishonesty, and accounts receivable, and any other insurance required by state or local laws.

All insurance policies must meet Apricot Lane's standards and specifications, and be written by an insurance company licensed in the state where the franchise operates, with a minimum "A" rating classification as indicated in Best's Key rating guide. Currently, InterWest Insurance Services is the preferred provider, and franchisees must give InterWest the right to match any other quotes they receive. This requirement ensures that franchisees maintain adequate insurance coverage to protect both their business and Country Visions from potential liabilities.

This provision protects Country Visions from potential liabilities arising from underinsured or uninsured franchisees. It also ensures that all Apricot Lane stores meet minimum insurance standards, maintaining consistency across the franchise system. Franchisees should ensure they understand the insurance requirements and maintain their policies to avoid Country Visions stepping in to procure coverage on their behalf, which could result in additional fees.