Does the insurance coverage for a Beauty Bungalows franchise need to cover vandalism and malicious mischief?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage, including protection against vandalism and malicious mischief. The FDD outlines the mandatory insurance requirements for operating a Beauty Bungalows franchise. This includes fire and lightning, extended coverage, theft, vandalism and malicious mischief, flood (if the Beauty Bungalows Franchise is in a Designated Flood Hazard Area), and sprinkler leakage insurance on the Beauty Bungalows Franchise and all fixtures, equipment, supplies and other property used in the operation of the Beauty Bungalows Franchise, for not less than 100% of the replacement value of the same, except that an appropriate deductible clause will be permitted.

This requirement ensures that the Beauty Bungalows franchise location is financially protected against potential damages resulting from vandalism or malicious acts. The insurance coverage must be for not less than 100% of the replacement value of the Beauty Bungalows Franchise and all fixtures, equipment, supplies and other property used in the operation of the Beauty Bungalows Franchise. This coverage helps to mitigate financial losses and ensures business continuity in the event of such incidents. An appropriate deductible clause will be permitted.

In addition to vandalism and malicious mischief coverage, franchisees must also maintain other types of insurance, including workers' compensation insurance (if they have employees), comprehensive general liability insurance, product liability insurance, and professional liability insurance. The amounts for these other insurance types are specified in the FDD, such as workers' compensation insurance in amounts prescribed by law in your territory but not less than $500,000 in coverage, 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, and professional liability insurance must be maintained at all times in amounts not less than $1,000,000 per occurrence. Franchisees must also adhere to any additional insurance requirements stipulated in their lease or mortgage agreements.

Beauty Bungalows retains the right to obtain the required insurance on behalf of the franchisee if the franchisee fails to do so. In such cases, the franchisee will be responsible for the cost of the insurance premium plus an administrative fee of 20% of the premium amount. This provision ensures that all Beauty Bungalows locations maintain the necessary insurance coverage to protect the brand and the business operations.