What is the deadline for an Auntie Annes franchisee to provide evidence of insurance coverage upon demand?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We require you to purchase and maintain specific types of insurance coverage as described in more detail in the Franchise Agreement and the Manuals from insurance companies that meet our minimum standards. We also specify the minimum amounts of insurance coverage you must maintain. All insurance policies must name us and others we designate as additional insureds. You must provide us with evidence of your insurance coverage before you begin operations at your Shop, upon annual renewal of your insurance, and otherwise within 10 days of our demand for proof. We reserve the right to obtain a master insurance policy on behalf of the System for certain types of coverage and require you to pay all or a portion of your proportionate share of coverage under the master policy to us or our Approved Supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, franchisees must provide evidence of insurance coverage under specific circumstances. Franchisees are required to secure and maintain particular types of insurance coverage from insurance companies that meet Auntie Anne's minimum standards, as detailed in the Franchise Agreement and the Manuals.
Specifically, franchisees must furnish proof of their insurance coverage to Auntie Anne's before commencing operations at their shop. Additionally, they need to provide this evidence upon the annual renewal of their insurance policies. Beyond these regular submissions, Auntie Anne's can demand proof of insurance coverage at any time, and in such cases, franchisees are obligated to supply the requested documentation within 10 days of the demand.
This requirement ensures that Auntie Anne's franchisees maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. The franchisor also retains the right to obtain a master insurance policy on behalf of the entire system for certain coverage types, with franchisees required to pay their proportionate share of the coverage costs.