Can Bananas Smoothies Frozen Yogurt request an increase in the amount of property insurance coverage?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
erm of the Agreement shall maintain in full force and effect, policies of insurance for the following coverage:
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- Property insurance on a "Special Form" perils basis, covering the full replacement value of the Franchised Restaurant (Improvements and Betterments) and all of its Business Personal Property. Policy shall carry a Replacement Cost Valuation, a prescribed Amount endorsement, (no coinsurance) and a deductible not to exceed Two Thousand Five Hundred Dollars ($2,500). Amount of coverage shall be not less than the full replacement cost of all such property. Franchisor may request, from time to t
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, franchisees are required to maintain property insurance on a "Special Form" perils basis, covering the full replacement value of the Franchised Restaurant (Improvements and Betterments) and all of its Business Personal Property. The policy must carry a Replacement Cost Valuation, a prescribed Amount endorsement, and a deductible not exceeding $2,500. The amount of coverage must be no less than the full replacement cost of all such property.
Bananas Smoothies Frozen Yogurt has the right to request a reasonable increase in the amount of property insurance from time to time. This increase would account for inflationary trends, ensuring that the coverage remains adequate to meet the full replacement cost of the property.
This requirement protects both the franchisee and Bananas Smoothies Frozen Yogurt by ensuring that the restaurant is adequately insured against potential losses due to property damage. Franchisees should factor in potential insurance premium increases when budgeting for ongoing operational costs.