What must a Baya Bar franchisee provide to the franchisor as evidence of insurance coverage?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
anchised 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.
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 the Franchisor as evidence of the required insurance coverages. These certificates must be maintained with Baya Bar at all times. Additionally, if Baya Bar requests it, the franchisee must also deliver a copy of the insurance policy or policies.
This requirement ensures that Baya Bar is protected and aware of the franchisee's insurance coverage throughout the term of the franchise agreement. It is a standard practice in franchising to ensure that franchisees maintain adequate insurance to cover potential liabilities.
Furthermore, Baya Bar retains the right to increase the required minimum insurance coverage or add additional types of insurance requirements as deemed necessary. In such cases, the franchisee is obligated to submit proof of the updated coverage to Baya Bar within thirty (30) days of the new requirements. Failure to procure or maintain the required insurance allows Baya Bar to obtain the insurance themselves and charge the franchisee for the cost, including a reasonable fee and attorney's fees.