Is Workers Compensation coverage required for a Baya Bar franchise?
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 are required to obtain and maintain Workers Compensation coverage. The specific amount and terms of this coverage are dictated by state law.
In addition to Workers Compensation, Baya Bar franchisees must also secure and maintain several other types of insurance. These include: (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 with $1,000,000 single limit per occurrence and $2,000,000 aggregate limit; and (4) Business Automobile Liability insurance with $1,000,000 coverage.
All insurance policies, except for workers' compensation, must name Baya Bar, its affiliates, and their respective personnel as additional insureds. Furthermore, these policies must include a waiver of subrogation in favor of Baya Bar and its affiliates, be primary and non-contributing with any insurance carried by them, and stipulate that Baya Bar receives at least 30 days' prior written notice of any material changes or cancellations. Franchisees must provide Baya Bar with a certificate of insurance when they sign the lease for the shop premises or 90 days after signing the Franchise Agreement, whichever occurs first, and within ten days of each policy's renewal. Baya Bar has the right to request claims reports and reserve information from the franchisee's insurance company and can change insurance requirements during the term of the Franchise Agreement.