Who must be named as additional insureds on all insurance policies required for a Beehive Homes franchise?
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, franchisees are required to secure and maintain specific insurance coverage throughout the term of their agreement. These include worker's compensation, commercial general liability/professional liability, and property damage insurance.
The FDD specifies that Beehive Homes, its affiliates, and its designees must be named as additional insureds on all required insurance policies. This protects Beehive Homes from potential liabilities related to the franchisee's operations. The insurance policies must also stipulate that they cannot be canceled without providing Beehive Homes with 30 days' prior written notice.
Furthermore, franchisees must furnish Beehive Homes with current copies or certificates of these insurance policies, demonstrating that all premiums have been paid. This documentation is required before the Beehive Homes location opens, within 30 days after each policy renewal, and at any other time reasonably requested by Beehive Homes. This ensures that the franchisee maintains the required insurance coverage and that Beehive Homes is aware of the policy details.