What is the minimum coverage period for business interruption insurance that a Baya Bar franchisee must maintain?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
n insurance for a minimum of twelve (12) months, in an amount necessary to satisfy Franchisee's obligations under this Agreement and the lease for the Franchised Business location.
- 15.1.5 Automobile Insurance. Prior to operation of any vehicle on behalf of the Franchised 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. 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 re
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the length of the minimum coverage period for business interruption insurance that a Baya Bar franchisee must maintain is not specified. While the FDD discusses various insurance requirements, including automobile liability insurance with a minimum combined single limit of $1,000,000, it does not detail the specifics of business interruption insurance coverage periods.
Baya Bar franchisees are required to maintain current Certificates of Insurance with the Franchisor, demonstrating the continuation of required coverages. The Franchisor retains the right to increase minimum insurance requirements or add new types of insurance as deemed necessary. Franchisees must provide proof of coverage within 30 days of any changes to insurance requirements.
Prospective Baya Bar franchisees should clarify the required coverage period for business interruption insurance with the Franchisor to fully understand their obligations. Understanding the duration of coverage is essential for adequate protection against potential business disruptions.