When must a Bambu franchisee provide certificates of insurance evidencing their insurance coverage?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
You must procure, maintain and provide evidence of certain types and amounts of insurance coverage described in the FRC Materials. These types of insurance include comprehensive general liability, products
liability, unemployment and worker's compensation, personal property, business interruption, owned and non-owned auto liability and builder's risk coverage and an umbrella policy. We recommend that you also carry employee dishonesty insurance. If you fail to purchase the required insurance, we may demand that you cease operations or obtain insurance for you and you must reimburse us for the cost of the insurance. All insurance policies must name us as an additional insured and give us at least 30 days prior written notice of termination, amendment or cancellation. You also must provide us with certificates of insurance evidencing your insurance coverage before the opening of your shoppe, upon any changes in the coverage that we require, and at least 30 days' prior to the expiration of any existing policies. You must furnish us with copies of all required insurance policies or other evidence of insurance coverage and payment of premiums as we request from time to time. We reserve the right to require you to change the types and amounts of insurance you are required to maintain upon 60 days' prior written notice to you.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees must provide certificates of insurance evidencing their insurance coverage at three specific times. These times are before the opening of their shoppe, upon any changes in the coverage that Bambu requires, and at least 30 days prior to the expiration of any existing policies.
This requirement ensures that Bambu franchisees maintain continuous and adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. The different types of insurance coverage Bambu requires includes comprehensive general liability, products liability, unemployment and worker's compensation, personal property, business interruption, owned and non-owned auto liability and builder's risk coverage and an umbrella policy. Bambu also recommends that franchisees carry employee dishonesty insurance.
Furthermore, Bambu has the right to demand that a franchisee cease operations or obtain insurance at the franchisee's expense if the franchisee fails to purchase the required insurance. All insurance policies must name Bambu as an additional insured and provide them with at least 30 days prior written notice of any termination, amendment, or cancellation. Bambu also reserves the right to change the types and amounts of insurance required, providing franchisees with 60 days' prior written notice.