What endorsements are Bath Tune Up franchisees required to obtain on their insurance policies?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will have in effect on the Operating Date and maintain during the Term a commercial general liability insurance policy and all other insurance in the types and amounts as are specified in the Manuals. All policies of insurance to be maintained by Franchisee will contain a separate endorsement naming the Franchisor, and if required, its affiliated companies, as additional insured parties. The policies of insurance will not be subject to cancellation or modification except after 30 days prior written notice to the Franchisor. Franchisee will cause certificates of insurance or other evidence of insurance coverage in the form Franchisor requests showing compliance with the above requirements to be delivered to the Franchisor annually upon renewal and at any other times that Franchisor requests. If Franchisee does not maintain the insurance coverage required in the Manuals, Franchisor may purchase the policies of insurance it considers to be required and Franchisee will reimburse Franchisor for all costs of the insurance.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, franchisees must maintain a commercial general liability insurance policy and other insurance types and amounts as specified in the Manuals. These insurance policies must include a separate endorsement naming Bath Tune Up, and its affiliated companies if required, as additional insured parties.
This requirement ensures that Bath Tune Up is protected from potential liabilities arising from the franchisee's operations. The policies must not be subject to cancellation or modification without providing 30 days prior written notice to Bath Tune Up.
Franchisees are responsible for providing certificates of insurance or other evidence of coverage to Bath Tune Up annually upon renewal and at any other time upon request, demonstrating compliance with the insurance requirements. If a franchisee fails to maintain the required insurance coverage, Bath Tune Up has the right to purchase the necessary policies and be reimbursed by the franchisee for all associated costs. This protects Bath Tune Up from potential financial losses due to franchisee negligence or accidents.