What documentation must a Baya Bar franchisee provide to the franchisor as evidence of insurance coverage?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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 reasonably prudent to require.
Within thirty (30) days of any such required new limits or types of coverage, Franchisee must submit proof to Franchisor of Franchisee's coverage pursuant to Franchisor's requirements.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must provide specific documentation to the franchisor as proof of insurance coverage. Franchisees are required to deliver and maintain current Certificates of Insurance with Baya Bar, evidencing the existence and continuation of the required insurance coverages. Additionally, if Baya Bar requests it, the franchisee must also provide a copy of the insurance policy or policies.
These requirements ensure that Baya Bar franchisees maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. The levels and types of insurance coverage stated are minimum requirements, and Baya Bar retains the right to increase these minimums or add additional types of insurance requirements as deemed necessary. Franchisees must comply with these changes and submit proof of the updated coverage within thirty days of the new requirements.
If a franchisee fails to procure or maintain the required insurance, Baya Bar has the right, but not the obligation, to procure the insurance on behalf of the franchisee and charge the franchisee for the cost, including a reasonable fee for expenses and attorneys' fees. The franchisee is then obligated to pay Baya Bar immediately upon notice of such action and the associated costs. This provision underscores the importance of maintaining continuous and adequate insurance coverage as mandated by the franchise agreement.