Can the Baya Bar franchisor increase the minimum insurance requirements?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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, Baya Bar retains the right to increase the minimum insurance requirements for franchisees. The FDD states that the levels and types of insurance specified are minimum requirements, and Baya Bar reserves the right to raise these minimums or add additional types of insurance as deemed reasonably prudent.
This means that as a Baya Bar franchisee, you could face increased costs for insurance coverage during the term of your franchise agreement if Baya Bar decides to raise the minimum requirements. These changes can occur at any time, and Baya Bar is not required to seek your consent or approval.
Within 30 days of Baya Bar requiring new insurance limits or types of coverage, franchisees must provide proof of coverage that meets the updated requirements. Failure to maintain the required insurance, as revised, gives Baya Bar the right to procure the insurance themselves and charge the franchisee for the cost, including a reasonable fee and attorney's fees.