What are the requirements for the insurance policies that Bath Tune Up franchisees must obtain?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
. Among other requirements that may be imposed in the Manuals, Franchisor may require that Franchisee's telephones be answered by a live person (either an employee of Franchisee or an answering service) during regular business hours, rather than using voice-mail or a telephone answering machine and that Franchisee utilize call tracking technology as may be prescribed by Franchisor in the Manuals.
8.5. Insurance
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.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage. On the Operating Date, a franchisee must have a commercial general liability insurance policy and other insurance types and amounts as specified in the Manuals.
All insurance policies must include a separate endorsement that names Bath Tune Up, and its affiliated companies if required, as additional insured parties. These policies cannot be canceled or modified without providing Bath Tune Up with 30 days' prior written notice. Franchisees must provide certificates of insurance or other evidence of coverage to Bath Tune Up annually upon renewal and at any other time the franchisor requests, demonstrating compliance with these requirements.
Furthermore, if a franchisee uses a vehicle in their Bath Tune Up business, they must maintain a comprehensive liability insurance policy that meets the specifications outlined in the Manuals, with Bath Tune Up listed as an additional named insured. Should a franchisee fail to maintain the required insurance coverage, Bath Tune Up has the right to purchase the necessary policies, and the franchisee is responsible for reimbursing Bath Tune Up for all associated costs.
It is important for prospective franchisees to carefully review the Bath Tune Up Manuals to understand the specific types and amounts of insurance required, as well as any additional specifications. Maintaining adequate insurance coverage is a standard requirement in franchising to protect both the franchisee and franchisor from potential liabilities.