From whom must Baya Bar franchisees obtain insurance coverage?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
h the Americans with Disabilities Act.
Insurance
When you sign the lease for the Shop premises or 90 days after you sign the Franchise Agreement, whichever occurs first, you must obtain the insurance coverage for the Shop that is required by the terms of your lease and applicable law, and that we specify in the Manual or otherwise in writing. Your insurance coverage must be maintained during the term of the Franchise Agreement and must be obtained from a responsible, duly licensed carrier or carriers acceptable to us and having a rating of at least "A-VII" with A.M. Best Company. All insurance must be on an "occurrence" basis. Currently you must maintain the following insurance: (1) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Franchised Business, for full repair and replacement value (subject to a reasonable deductible); (2) Business interruption insurance covering at least 12 months of income; (3) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit; (4) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000; (5) Workers Compensation coverage as required by state law; and (6) any insurance required by the terms of your lease, required by law or that we may require in the future.
All insurance policies, except for workers' compensation, must name us, our affiliates and the officers, directors, shareholders, partners, agents, representatives, independent contractors, servants and employees of each of them, as additional named insureds. All insurance policies must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate th
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must obtain insurance coverage from a responsible, duly licensed carrier or carriers acceptable to Baya Bar. These carriers must have a rating of at least "A-VII" with A.M. Best Company. The insurance coverage must be maintained during the term of the Franchise Agreement and must be on an "occurrence" basis.
The required insurance includes: (1) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Franchised Business, for full repair and replacement value (subject to a reasonable deductible); (2) Business interruption insurance covering at least 12 months of income; (3) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit; (4) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000; (5) Workers Compensation coverage as required by state law; and (6) any insurance required by the terms of your lease, required by law or that Baya Bar may require in the future.
All insurance policies, except for workers' compensation, must name Baya Bar, its affiliates, and their respective officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees as additional named insureds. The policies must also include a waiver of subrogation in favor of Baya Bar and its affiliates, be primary and non-contributing with any insurance carried by Baya Bar or its affiliates, and stipulate that Baya Bar receive no less than 30 days' prior written notice of a material alteration to or cancellation of the policies.
Franchisees must provide Baya Bar with a certificate of insurance showing that they have obtained the required policies when they sign the lease for the Shop premises or 90 days after they sign the Franchise Agreement, whichever occurs first, and within ten days each policy's renewal. Baya Bar has the right to require a report of claims made and reserves set against the insurance from the franchisee's insurance company and can change the insurance requirements during the term of the Franchise Agreement. If a franchisee fails to obtain the required insurance, Baya Bar has the right to purchase insurance on their behalf, with the franchisee responsible for reimbursing the costs plus a 10% administrative fee.