What evidence of insurance coverage is required for a Belocal franchisee to receive their first commission payment?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee's first commission payment is contingent upon securing and providing evidence of all required insurance coverage, as detailed in Section 12 of the agreement. Additionally, the franchisee must be a legal entity rather than an individual to receive their first commission payment.

Section 12 specifies the types and amounts of insurance Belocal franchisees must maintain. This includes Comprehensive General Liability Insurance with $2,000,000 combined single limit per occurrence and a $4,000,000 general aggregate. Franchisees also need Automobile liability coverage of at least $300,000 combined single limit, covering owned, non-owned, and hired vehicles. Furthermore, event insurance is required for each event the franchisee hosts or sponsors, with coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate. The franchisee may also need to obtain other insurance policies or coverages required by the state or locality in which they operate their Belocal franchise.

The insurance policies, except for workers' compensation if applicable, must name Belocal and its affiliates as additional insureds. These policies must include a waiver of subrogation in favor of Belocal and its affiliates. The policies must also ensure that the additional insureds' interests are not affected by any breach of policy provisions by the franchisee and that the insurer will defend the additional insureds in any covered action, while reserving their right to involve counsel of their own choosing. The franchisee's insurance must apply as primary and non-contributory.

If a Belocal franchisee fails to maintain the required insurance, Belocal has the right, but not the obligation, to procure the insurance and charge the franchisee for it, including a reasonable fee for expenses. Belocal may also elect to reduce the compensation payable to the franchisee by an amount equal to the charges incurred for procuring and maintaining the insurance coverage. Therefore, it is crucial for prospective franchisees to understand these insurance requirements and factor the costs into their financial planning.