Must a Baya Bar franchisee maintain current Certificates of Insurance with the franchisor at all times?
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. 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.
- 15.5 Additional Insured.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must provide and maintain current Certificates of Insurance with Baya Bar at all times. This demonstrates proof that the franchisee has the required insurance coverage in place and that it is continuously active.
In addition to providing certificates, Baya Bar may request a copy of the insurance policies. If a franchisee fails to secure or maintain the necessary insurance, Baya Bar has the right, but not the obligation, to obtain 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.
Baya Bar also reserves the right to increase the minimum insurance requirements or add additional types of insurance as deemed necessary. Franchisees must submit proof of coverage meeting these new requirements within thirty days of notification. Furthermore, franchisees operating vehicles for the business must obtain comprehensive automobile liability insurance with a combined single limit of at least $1,000,000 for bodily injury and property damage.