What are the requirements for the insurance policies that Beef O Bradys franchisees must obtain and maintain?

ials, including any applicable licensing fees related to the playing of sports videos, television, satellite or cable programming, pay-per-view events, or music (if any) in any format at the Family Sports Pub (e.g. HBO, DSS, ASCAP, BMI or ESPN fees). We may require that you purchase or lease Operating Assets and Family Sports Pub Materials through any form of a "business to business," e-commerce, Intranet or Internet supply network that we may designate, establish or participate in from time to time.

• 5.6 Insurance Requirements. As an independent business owner, you will be required to obtain and maintain certain insurance on your business. We must be listed as an additional insured on all liability policies. You will also be required to show proof of coverage and submit this proof on a periodic basis to us, usually annually. The insurance required and the amounts necessary may vary by state, so please check with your state agencies to ensure that your business is properly covered. More detailed information about your insurance requirements is described below.
  • (a) Required Types of Insurance.During the term of this Agreement, you must maintain in force, at your sole cost and expense and under policies of insurance issued by carriers approved by us, the following types of insurance coverage:
    • (i) Umbrella: "Umbrella" liability insurance;
  • (ii) Liability: Liability insurance against liability for personal services care and negligence;
  • (iii) Worker's Compensation. Workers' compensation in the amounts required by applicable law for the Family Sports Pub; and
  • (iv) Property. General casualty and property insurance including fire, flood, hurricane, vandalism and malicious mischief, and extended coverage insurance with a full replacement value of your inventory and contents of the Family Sports Pub, covering such risks as are covered in the Standard Extended Coverage Endorsement.
  • (b) Recommended Types of Insurance. In addition to the required insurance types set forth above, we recommend that you also maintain in force, at your sole cost and expense and under policies of insurance issued by carriers approved by us, the following types of insurance coverage:
  • (i) Product Liability. Comprehensive, public and product liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Family Sports Pub;

• (ii) Motor Vehicle. Comprehensive motor vehicle insurance (including personal injury protection, uninsured motorist protection, and "umbrella" coverage) for any motor vehicles operated by the Family Sports Pub;
  • (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
• (vii) Limits. Provide that you cannot reduce the policy limits, restrict coverage, cancel or otherwise alter or amend the policies without our prior written consent.
• (e) Evidence of Coverage. Before expiration of each of your insurance policies, you must obtain and furnish us with a copy of the new, renewal or replacement policy extending your coverage, along with evidence of the premium payment. You must also allow any inspections of the Family Sports Pub required to obtain or maintain the insurance.

• (f) Impact of Not Meeting Our Insurance Requirements. If you do not maintain the required insurance coverage, or do not furnish us with satisfactory evidence of insurance coverage and premium payments, we may obtain, at our option and in addition to our other rights and remedies under this Agreement, any required insurance coverage on your behalf. If we do so, you must fully cooperate with us in our effort to obtain the insurance policies and must promptly sign all forms required to obtain or maintain the insurance. Finally, you must pay us, on demand, any costs and premiums we incur in obtaining insurance on your behalf.
• (g) Insurance Does Not Waive or Limit Your Obligations.

Source: Item 23 — RECEIPTS. (FDD pages 66–330)