What are the minimum insurance coverage levels a Belocal franchisee must maintain?
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 are required to maintain specific insurance coverage levels. Belocal franchisees must secure and keep active the insurance levels detailed in both the Franchise Agreement and the Franchise Brand Standards Manual, as well as any applicable laws. At a minimum, franchisees must have comprehensive general liability insurance with $2,000,000 combined single limit per occurrence and a $4,000,000 general aggregate.
In addition to general liability coverage, Belocal franchisees need automobile liability coverage, including owned, non-owned, and hired vehicles, with a minimum coverage of $300,000 combined single limit. Furthermore, for each event hosted or sponsored related to the Belocal publication, franchisees must obtain event insurance coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate, regardless of the event's location. Belocal also retains the right to mandate other insurance types based on state or local requirements where the franchise operates.
All insurance policies must be acceptable to Belocal, and the company reserves the right to increase or modify the required liability limits or coverage types. Except for workers' compensation, Belocal and its affiliates, along with their officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees, must be named as additional insureds on each policy. The insurance policy must also waive the insurer's right of subrogation against Belocal and the additional insureds. The franchisee's insurance must act as the primary and non-contributory coverage.