Does Beef O Bradys require franchisees to carry business interruption insurance?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
(iii) PCI Compliance: PCI and data security insurance;
(iv) Business Interruption: Business interruption insurance;
(v) Employee Coverage.
Comprehensive crime and blanket employee dishonesty insurance;
- (vi) Leasehold or Financing.
Such other insurance as is required by lease or other financing document (if any) for the Family Sports Pub; and
- (vii) Other.
Other insurance policy types recommended by your insurance advisor.
- (c) Coverage Requirements.
You must maintain the insurance coverages in the minimum amounts we prescribe from time-to-time in our System Standards.
We may periodically increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes and circumstances.
(d) Policy Terms. All insurance policies you obtain and maintain must:
(i) No Limitations.
Contain no provision which in any way limits or reduces coverage for us in the event of any claim by us or any of our affiliates, directors, officers or agents;
- (ii) Indemnification.
Extend to provide indemnity for all obligations assumed by you under this Agreement and all items for which you are required to indemnify us under the provisions of this Agreement or otherwise;
- (iii) Additional Insureds.
Name us as additional insureds;
(iv) Subrogation. Contain a waiver of the insurance company's right of subrogation against us;
(v) Coverage.
Provide that the coverage afforded applies separately to each insured against whom a claim is brought as though a separate policy had been issued to each insured;
- (vi) Notice of Termination.
Provide that the insurance company will provide us with at least thirty (30) days' prior written notice of termination, expiration, cancellation or material modification of any policy; and
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, franchisees are required to maintain business interruption insurance. This insurance coverage is listed as one of the required insurance policies franchisees must secure to operate their Family Sports Pub.
The FDD specifies that franchisees must maintain insurance coverages in the minimum amounts prescribed by Beef O Bradys from time to time in their System Standards. These coverage requirements can be periodically increased or decreased to reflect inflation, new risks, changes in law, standards of liability, higher damage awards, or other relevant changes. This means the franchisee needs to stay updated with the franchisor's requirements to ensure they have adequate coverage.
The insurance policies obtained by the franchisee must adhere to specific terms, including no limitations on coverage for Beef O Bradys, indemnification for obligations assumed by the franchisee, naming Beef O Bradys as additional insureds, a waiver of the insurance company's right of subrogation against Beef O Bradys, separate coverage for each insured party, and a minimum of thirty days' prior written notice to Beef O Bradys in case of termination, expiration, cancellation, or material modification of any policy. These stipulations ensure that Beef O Bradys is protected under the franchisee's insurance policies and receives ample notice of any changes that could affect their coverage.