If Beauty Bungalows obtains insurance for a franchisee, what fee is added to the premium cost?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance coverage, Beauty Bungalows has the option to obtain the necessary insurance on behalf of the franchisee. In such cases, the franchisee is responsible for reimbursing Beauty Bungalows for the cost of the insurance premium.

In addition to the premium cost, Beauty Bungalows will charge an administrative fee equivalent to 20% of the premium amount. This fee covers the administrative efforts and expenses incurred by Beauty Bungalows in securing the insurance coverage for the franchisee.

This policy ensures that all Beauty Bungalows locations maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. Franchisees should ensure they maintain the required insurance to avoid these additional costs.