Who must approve the insurance companies used by Beehive Homes franchisees?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ON
- 10.1. Insurance. Franchisee shall acquire and maintain, at his own expense at all times during the entire Term of this Agreement, (a) Worker's Compensation insurance prescribed by law in the state in which the Home is located and Employer's Liability Insurance with $100,000/$500,000/$100,000 minimum limits; (b) Commercial General Liability/Professional Liability insurance in a form approved by Franchisor with a limit of $1,000,000 per occurrence/$2,000,000 aggregate, including a Sexual Abuse & Molestation rider with a limit of at least $1,000,000; and (c) property damage insurance covering the Home and its contents for replacement value. All insurance policies required hereunder shall name Franchisor, its Affiliates and its designees as additional insureds, as their interests may appear in this Agreement, will provide that the policies cannot be canceled without thirty (30) days prior written notice to Franchisor, and will be issued by companies approved byFranchisor. Franchisee will furnish Franchisor with current copies of such policies or certificates of such insurance, together with evidence that all premiums currently due and payable therefor have been paid prior to opening of the Home, within thirty (30) days after each policy renewal and as reasonably re
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes franchisees must acquire and maintain certain insurance coverage during the entire term of the agreement. This includes worker's compensation insurance, commercial general liability/professional liability insurance with specific limits, including a $1,000,000 limit for the Sexual Abuse & Molestation rider, and property damage insurance covering the home and its contents for replacement value.
All insurance policies must name Beehive Homes, its affiliates, and its designees as additional insureds. The policies must also provide that they cannot be canceled without thirty days prior written notice to Beehive Homes. Importantly, the insurance companies providing these policies must be approved by Beehive Homes.
Franchisees are required to furnish Beehive Homes with current copies of the insurance policies or certificates, along with evidence that all premiums have been paid. This documentation must be provided prior to opening the home, within thirty days after each policy renewal, and as reasonably requested by Beehive Homes. This ensures that Beehive Homes maintains oversight and control over the insurance coverage, protecting both the franchisee and the franchisor from potential liabilities.