Does the comprehensive general liability insurance for Beauty Bungalows cover attorney's fees?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ate deductible clause will be permitted;
- C. Comprehensive general liability insurance and product liability insurance coverage in such amounts and upon such terms as may from time to time be customary for a salon studio rental business located in your Protected Territory, but not less than $1,000,000, insuring both you and Beauty Bungalows against all claims, suits, obligations, liabilities and damage, including attorneys' fees, based upon or arising out of actual or alleged personal injuries or property damage relating to the use or condition of the Beauty Bungalows Franchise.
- D. Professional liability insurance must be maintained at all times in amounts not less than $1,000,000 per occurrence. It must protect the Beauty Bungalows Franchise against all professional related claims. If renters of said Beauty Bungalows Franchise have operations that are excluded on professional liability policy, Franchisee is responsible for ensuring that the excluded operation is covered under a separate policy.
- E. Such additional insurance as may be required by the terms of any lease or mortgage for the Beauty Bungalows Franchise.
- F.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, franchisees are required to maintain comprehensive general liability insurance. This insurance must cover claims, suits, obligations, liabilities, and damages, including attorney's fees, arising from personal injuries or property damage related to the use or condition of the Beauty Bungalows Franchise. The minimum coverage amount for this insurance is $1,000,000.
This requirement ensures that both the franchisee and Beauty Bungalows are protected against potential financial losses resulting from lawsuits or claims. By including attorney's fees in the coverage, franchisees can avoid significant out-of-pocket expenses in the event of legal action. This is a common practice in franchising, as it helps to mitigate risks associated with operating a business and protects the brand's reputation.
Furthermore, franchisees must also maintain product liability insurance coverage in the same amount, insuring both the franchisee and Beauty Bungalows against all claims, suits, obligations, liabilities and damage, including attorneys' fees, based upon or arising out of actual or alleged personal injuries or property damage relating to the use or condition of the Beauty Bungalows Franchise. Franchisees must also maintain professional liability insurance of no less than $1,000,000 per occurrence to protect against all professional related claims. If renters of said Beauty Bungalows Franchise have operations that are excluded on professional liability policy, Franchisee is responsible for ensuring that the excluded operation is covered under a separate policy.
If a Beauty Bungalows franchisee fails to maintain the required insurance coverage, Beauty Bungalows has the right to obtain the insurance on the franchisee's behalf. In such cases, the franchisee will be responsible for reimbursing Beauty Bungalows for the cost of the insurance premium, plus an additional administrative fee equal to 20% of the premium amount. This provision incentivizes franchisees to maintain their insurance coverage and ensures that Beauty Bungalows is protected from potential liabilities.