What section of the Batteries Plus Bulbs Franchise Agreement covers insurance requirements?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
modify policy, endorsement or other requirements, and require different or additional kinds of insurance to reflect inflation or changes in standards of liability. If Franchisee at any time fails to maintain in effect any insurance coverage required by Franchisor, or to furnish satisfactory evidence thereof, Franchisor, at its option, may obtain insurance coverage for Franchisee. Franchisee agrees to promptly sign any applications or other forms or instruments required to obtain any insurance and pay to Franchisor, on demand, any costs and premiums incurred by Franchisor. Franchisee will provide Franchisor with copies of the certificate of insurance, insurance policy endorsements and other evidence of compliance with these requirements as Franchisor periodically requires within two (2) weeks before Franchisee takes possession and commences development of the Store premises and at such other times as Franchisor may require. In addition, Franchisee will provide to Franchisor with a copy of the certificate of or other evidence of the renewal or extension of each insurance policy. Franchisee's obligation to obtain and maintain these insurance policies in the amounts specified shall not be limited in any way by reason of any insurance that Franchisor may maintain, nor does Franchisee's procurement of required insurance relieve Franchisee of liability under the indemnity obligations described in Section 8(B). Franchisee's insurance procurement obligations under this Section are separate and independent of Franchisee's indemnity obligations. Franchisor does not represent or warrant that any insurance that Franchisee is required to purchase will provide adequate coverage for Franchisee. The requirements of insurance specified in this Agreement are for Franchisor's protection. Franchisee should consult with its own insurance agents, brokers, attorneys and other insurance advisors to determine the level of insurance protection it needs and desires, in addition to the coverage and limits required by Franchisor.
- K.
Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the insurance requirements are covered in Section K of Item 22 within the franchise agreement. This section stipulates that Batteries Plus Bulbs can modify insurance policy requirements to reflect inflation or changing liability standards.
If a franchisee fails to maintain the required insurance or provide proof of coverage, Batteries Plus Bulbs has the option to obtain insurance on the franchisee's behalf. The franchisee is then responsible for promptly signing any necessary applications and paying all associated costs and premiums to Batteries Plus Bulbs upon demand. Franchisees must provide copies of insurance certificates and policy endorsements to Batteries Plus Bulbs within two weeks before taking possession of the store and at other times as required by Batteries Plus Bulbs.
Furthermore, franchisees must also provide evidence of insurance policy renewals or extensions. The franchisee's obligation to maintain insurance is not limited by any insurance Batteries Plus Bulbs may carry, nor does it relieve the franchisee of their indemnity obligations as described in Section 8(B). Batteries Plus Bulbs does not guarantee that the required insurance will provide adequate coverage for the franchisee, and the insurance requirements are primarily for Batteries Plus Bulbs' protection. Therefore, Batteries Plus Bulbs recommends that franchisees consult with their own insurance advisors to determine the appropriate level of coverage needed beyond the minimum requirements set by Batteries Plus Bulbs.