If renters of a Beauty Bungalows franchise have operations excluded from the professional liability policy, who is responsible for ensuring coverage?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, the franchisee is responsible for ensuring coverage if renters' operations are excluded from the professional liability policy. Beauty Bungalows requires franchisees to maintain professional liability insurance at all times, with a minimum coverage of $1,000,000 per occurrence, to protect against professional-related claims.

If the renters within a Beauty Bungalows franchise location have operations that are excluded from the franchisee's professional liability policy, the franchisee must ensure that these excluded operations are covered under a separate policy. This means the franchisee needs to actively verify the scope of coverage for all renters and secure additional insurance to fill any gaps.

This requirement places a significant responsibility on the Beauty Bungalows franchisee to manage and maintain adequate insurance coverage for all activities within their location. Failure to do so could expose the franchisee to potential liability for uncovered claims. Franchisees should carefully review their insurance policies and the operations of their renters to ensure full compliance with Beauty Bungalows' insurance requirements.