What is the minimum combined single limit for automobile liability coverage that a Belocal franchisee must carry?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
.
Insurance: You must obtain and maintain in full force and effect the levels of insurance specified in the Franchise Agreement and the Franchise Brand Standards Manual or applicable law. At a minimum, you must carry (i) Comprehensive General Liability Insurance, including broad-form contractual liability, broad-form property damage, personal injury, advertising injury, completed operations, products liability, and fire damage coverage, in the amount of $2,000,000 combined single limit per occurrence and $4,000,000 general aggregate; (ii) automobile liability coverage, including coverage of owned, non-owned, and hired vehicles, with coverage in amounts not less than $300,000 combined single limit; (iii) event insurance for each event you host or sponsor in connection with the Publication in the amount of $1,000,000 per occurrence, $2,000,000 in the aggregate, regardless of where the event is located; and (iv) such other insurance as may be required by the state or locality in which you operate the Franchised Business. All policies must be acceptable to us. From time to time in our sole discretion, we may increase or modify such limits of liability or require additional types of coverage. In each of these policies, except for workers' compensation (if applicable), you agree to name us and our affiliates, and the officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees of each of them, as additional insureds (each, an "Additional Named Insured"), which will expressly protect both you and each Additional Named Insured and will require the insurer to defend both you and each Additional Named Insured in any action while reserving the right of each Additional Named Insured to involve counsel of their own choosing in protection of their own and system-wide interests. Additionally, your insurance policy must waive on behalf of the insurer any right of subrogation by the insurance company against us, the Additional Named Insureds, our officers, shareholders, and employees. Your insurance must apply as primary and non-contributor
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–35)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees must maintain automobile liability coverage with a minimum combined single limit of $300,000. This coverage must include owned, non-owned, and hired vehicles. This requirement ensures that Belocal franchisees have adequate financial protection in case of an accident involving a vehicle used for business purposes.
In addition to the automobile liability coverage, Belocal franchisees are required to maintain other insurance coverages, including Comprehensive General Liability Insurance and event insurance, with specific coverage amounts. Belocal also retains the right to modify these insurance requirements, including increasing the limits of liability or requiring additional types of coverage.
The insurance policies must name Belocal and its affiliates as additional insureds, protecting them in case of any legal action. The policies must also waive any right of subrogation against Belocal. This means the insurance company cannot recover any payments made to a third party from Belocal. The franchisee's insurance must be primary and non-contributory, meaning it pays out before any other insurance coverage Belocal might have. These stipulations are fairly standard in franchising, as franchisors seek to protect their brand and limit their liability exposure.