Who must the insurance policies obtained by a Beggars Pizza franchisee protect?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must procure, prior to the commencement of any operations under the Agreement, and must maintain in full force and effect at all times during the term of the Agreement, at Franchisee's expense, an insurance policy or policies protecting Franchisee, Franchisor, and their respective officers, directors, partners, agents, and employees against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with the Restaurant including, without limitation, comprehensive general liability insurance, property and casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, liquor liability (dram shop) insurance, and automobile insurance for all vehicles used in connection with the Restaurant. Such policy or policies must be written by a responsible carrier or carriers acceptable to Franchisor,
must name Franchisor and Begcom as additional insureds as specified by Franchisor, and must provide at least the types and minimum amounts of coverage 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's insurance policies must protect the franchisee, the franchisor, and their respective officers, directors, partners, agents, and employees. This coverage extends to any demand or claim related to personal injury, death, property damage, loss, liability, or expense occurring in connection with the Beggars Pizza restaurant.
To ensure adequate protection, Beggars Pizza requires franchisees to maintain several types of insurance, including comprehensive general liability, property and casualty, business interruption, statutory workers' compensation, employer's liability, product liability, liquor liability (if applicable), and automobile insurance for all vehicles used in connection with the restaurant. The policies must be written by a carrier acceptable to Beggars Pizza.
Furthermore, the insurance policies must name Beggars Pizza and Begcom as additional insureds, as specified in the manual. The franchisee is also obligated to provide certificates of insurance to Beggars Pizza and/or Begcom, as specified in the manual, prior to commencement of operations and at least 30 days before the expiration of any policy. These certificates must provide a minimum of thirty days' prior written notice to Beggars Pizza if there are any material alterations or cancellations to the coverage. If a franchisee fails to procure or maintain the required insurance, Beggars Pizza has the right, but not the obligation, to procure such insurance and charge the franchisee for the cost, plus a 10% administrative surcharge.