Where can additional insurance coverage and higher policy limits for Baya Bar franchisees be specified?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
ereby.
- 14.10 Franchisee shall not register or attempt to register the Intellectual Property in Franchisee's name or that of any other person, firm, entity or corporation.
15. INSURANCE AND INDEMNIFICATION
- 15.1 Procurement. Franchisee shall procure, prior to the commencement of any operations under this Agreement, and thereafter maintain in full force and effect during the term of this Agreement at Franchisee's sole cost and expense and to Franchisor's sole satisfaction, insurance policies protecting Franchisee and Franchisor, and naming Franchisor, its officers, directors, partners, owners, employees and affiliates as additional insureds as their interests may appear, in the following minimum limits (except as additional coverage and higher policy limits may reasonably be specified from time to time in the Manual or otherwise in writing):
- 15.1.1. Liability.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the specific details regarding additional insurance coverage and higher policy limits can be found in the franchise agreement, specifically within the manual or in writing. Baya Bar retains the right to increase the minimum insurance requirements or add new types of insurance as deemed necessary.
This means that while the franchise agreement outlines the minimum insurance coverage a franchisee must obtain, Baya Bar has the authority to modify these requirements. These changes would be communicated to the franchisee through the Baya Bar manual or via written notice.
It is crucial for prospective Baya Bar franchisees to understand that the initial insurance requirements are subject to change. Franchisees must stay informed of any updates to the insurance requirements to ensure they maintain adequate coverage throughout the term of their franchise agreement. Failure to comply with these changes could result in Baya Bar procuring the insurance on the franchisee's behalf and charging the franchisee for the associated costs and fees.