Who bears the cost of the insurance policies that a Baya Bar franchisee is required to procure?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
n insurance for a minimum of twelve (12) months, in an amount necessary to satisfy Franchisee's obligations under this Agreement and the lease for the Franchised Business location.
- 15.1.5 Automobile Insurance. Prior to operation of any vehicle on behalf of the Franchised Business, Franchisee must obtain comprehensive automobile liability insurance in the amount of at least a combined single limit for bodily injury and property damage of One Million Dollars ($1,000,000).
- 15.2 Evidence of Insurance. Franchisee shall deliver to, and maintain at all times with Franchisor, current Certificates of Insurance evidencing the existence and continuation of the required coverages. In addition, if requested by Franchisor, Franchisee shall deliver to Franchisor a copy of the insurance policy or policies required hereunder.
- 15.3 Failure to Procure. If, for any reason, Franchisee should fail to procure or maintain the insurance required by this Agreement as revised from time to time for all franchisees by the Manual or otherwise in writing, Franchisor shall have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge Franchisee for the cost thereof together with a reasonable fee for Franchisor's expenses in so acting, including all attorneys' fees. Franchisee shall pay Franchisor immediately upon notice by Franchisor to Franchisee that Franchisor has undertaken such action and the cost thereof.
- 15.4 Increase in Coverage**.** The levels and types of insurance stated herein are minimum requirements. Franchisor reserves the right to raise the required minimum requirements for any type of insurance or add additional types of insurance requirements as Franchisor deems r
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchisee is responsible for securing and paying for the required insurance policies. The franchisee must provide proof of coverage to Baya Bar and is responsible for maintaining these policies.
If a Baya Bar franchisee fails to obtain or maintain the necessary insurance, Baya Bar has the right, but not the obligation, to procure the insurance and charge the franchisee for the cost, including a reasonable fee and attorney's fees. The franchisee is required to pay Baya Bar immediately upon notification of such action and the associated costs.
The required levels and types of insurance are minimums, and Baya Bar retains the right to increase these minimums or add additional insurance requirements as deemed necessary. The franchisee must comply with these changes within thirty days of notification.