What is the minimum general aggregate for Comprehensive General Liability Insurance that a Belocal franchisee must carry?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 specific insurance coverage levels. Belocal requires franchisees to carry Comprehensive General Liability Insurance with a minimum of $2,000,000 combined single limit per occurrence and $4,000,000 general aggregate. This insurance must include broad-form contractual liability, broad-form property damage, personal injury, advertising injury, completed operations, products liability, and fire damage coverage.
In addition to the Comprehensive General Liability Insurance, Belocal franchisees must also maintain automobile liability coverage of at least $300,000 combined single limit, covering owned, non-owned, and hired vehicles. Event insurance is also required for each event hosted or sponsored in connection with the Publication, with coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate. The franchisee may also be required to obtain other insurance based on state or local laws.
Belocal retains the right to modify these insurance requirements, potentially increasing liability limits or requiring additional types of coverage. Franchisees must ensure that all insurance policies are acceptable to Belocal and name Belocal and its affiliates as additional insureds, protecting both the franchisee and Belocal in any legal actions. The insurance policy must also waive any right of subrogation against Belocal and its related parties, and it must apply as primary and non-contributory.
It is important for prospective Belocal franchisees to understand these insurance requirements, as they represent a significant ongoing cost of doing business. Franchisees should factor these costs into their financial projections and ensure they can obtain the necessary coverage to comply with Belocal's standards.