When must a Beggars Pizza franchisee deliver Certificates of Insurance to the franchisor?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4 Certificates of Insurance. Prior to the commencement of any operations under the Agreement, and thereafter at least thirty (30) days prior to the expiration of any policy, Franchisee must deliver to Franchisor and/or Begcom (as specified in the Manual) Certificates of Insurance evidencing the proper types and minimum amounts of coverage. All Certificates must expressly provide that no less than thirty (30) days' prior written notice must be given Franchisor if material alteration to or cancellation of the coverages evidenced by such Certificates occurs. Neither Franchisor nor Begcom will deliver any products under the Agreement until Franchisee has provided evidence of the required product liability insurance coverage to Franchisor and/or Begcom as specified in the Manual.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee must provide Certificates of Insurance to Beggars Pizza before starting any operations under the Franchise Agreement. These certificates must also be delivered at least thirty days before the expiration of any existing policy. The certificates serve as proof that the franchisee has the required types and minimum amounts of insurance coverage. These certificates must be delivered to Beggars Pizza and/or Begcom, as specified in the manual.
The Certificates of Insurance must also include a provision that Beggars Pizza receives at least thirty days' prior written notice if there are any material alterations or cancellations to the insurance coverage. Beggars Pizza will not deliver any products under the agreement until the franchisee provides evidence of the required product liability insurance coverage.
If a franchisee fails to maintain the required insurance, Beggars Pizza has the right, but not the obligation, to obtain the insurance and charge the franchisee for the cost, along with a 10% administrative surcharge. This charge is payable immediately upon notice. This remedy is in addition to any other remedies Beggars Pizza may have.
This requirement ensures that the Beggars Pizza brand is protected from potential liabilities arising from the franchisee's operations. It is a standard practice in franchising to ensure that franchisees maintain adequate insurance coverage to protect both the franchisee and the franchisor.