What documentation regarding insurance policies is a Benihana franchisee required to provide to BNC immediately after issuance?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.3 Franchisee must provide to BNC certificates of insurance for all issued insurance policies Franchisee is required to obtain under Article 12 immediately after issuance.
Franchisee must also provide to BNC copies of all amendments, notices of cancellations, or cancellations of such policies.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are required to provide specific documentation related to their insurance policies to Benihana (BNC). Immediately after the issuance of any insurance policies that the franchisee is required to obtain under Article 12 of the franchise agreement, the franchisee must provide certificates of insurance to BNC.
In addition to the initial certificates of insurance, the franchisee is also obligated to provide BNC with copies of any amendments made to these policies. Furthermore, the franchisee must furnish BNC with any notices of cancellations or actual cancellations of the insurance policies.
This requirement ensures that Benihana is kept fully informed about the franchisee's insurance coverage and any changes that may affect it. This allows Benihana to monitor compliance with the insurance requirements outlined in the franchise agreement and to take necessary steps to protect its interests and manage risk effectively. Failure to comply with these insurance requirements could result in Benihana purchasing insurance on behalf of the franchisee and charging the franchisee 105% of the cost.