When must a Baya Bar franchisee deliver Certificates of Insurance to the franchisor?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must provide current Certificates of Insurance to Baya Bar evidencing the required coverages at all times. This means maintaining up-to-date proof of insurance with the franchisor throughout the entire term of the franchise agreement.
In addition to maintaining current certificates, a Baya Bar franchisee must also submit proof of coverage to the franchisor within thirty days of any required new limits or types of coverage being implemented. This ensures that the franchisee's insurance coverage remains compliant with Baya Bar's evolving requirements.
Furthermore, prior to operating any vehicle on behalf of the franchised Baya Bar business, the franchisee must secure comprehensive automobile liability insurance with a combined single limit of at least $1,000,000 for bodily injury and property damage. This requirement highlights the importance of adequate insurance coverage for any vehicles used in the business's operations.