Is there a limit to the amount a Beehive Homes franchisee must pay for insurance?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
E AND INDEMNIFICATION
- 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 maintain specific insurance coverage during the term of their agreement. While the FDD specifies the minimum coverage limits for certain types of insurance, it does not explicitly state a maximum limit on what a franchisee might spend on insurance.
The required insurance includes Worker's Compensation insurance as prescribed by law, Employer's Liability Insurance with $100,000/$500,000/$100,000 minimum limits, Commercial General Liability/Professional Liability insurance with a $1,000,000 per occurrence/$2,000,000 aggregate limit (including a Sexual Abuse & Molestation rider with a limit of at least $1,000,000), and property damage insurance covering the Home and its contents for replacement value. These policies must name Beehive Homes as an additional insured and provide 30 days' notice before cancellation.
Beehive Homes franchisees are responsible for securing and paying for these insurance policies. The absence of a stated maximum limit means that franchisees might choose to obtain coverage exceeding the minimum requirements, potentially increasing their insurance expenses. Factors influencing the actual cost include the location of the Beehive Homes location, the insurance provider selected, and the specific terms of the policies obtained. It would be prudent for prospective franchisees to consult with insurance professionals to estimate these costs accurately and to understand the factors that could influence them.