Can Baya Bar require a report of claims and reserves from the franchisee's insurance company?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to require that you obtain from your insurance company a report of claims made and reserves set against your insurance. We have the right to change our insurance requirements during the term of your Franchise Agreement, including the types of coverage and the amounts of coverage, and you must comply with those changes. If you do not obtain any insurance as required, we have the right (but not the obligation) to purchase insurance on your behalf and you must reimburse our costs related to this purchase plus a 10% administrative fee.
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, Baya Bar has the right to require franchisees to obtain a report of claims made and reserves set against their insurance from their insurance company.
Baya Bar also has the right to change its insurance requirements during the term of the Franchise Agreement, including the types and amounts of coverage required. Franchisees must comply with these changes.
If a franchisee fails to obtain the required insurance, Baya Bar has the right, but not the obligation, to purchase insurance on the franchisee's behalf. The franchisee would then be responsible for reimbursing Baya Bar for the cost of the insurance, plus a 10% administrative fee.