What are the basic insurance requirements that a Benjamin Franklin Plumbing franchisee must maintain?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1. Basic Requirements. You must maintain the types and minimum amounts of insurance coverage and bonds we specify for Franchised Businesses, at your own expense. The policies must be written by carriers with an industry rating acceptable to us; must name Franchisor, our affiliates, and their respective officers, directors, shareholders, and employees as additional insureds as we direct; and must not have deductibles, exclusions or co-insurance that are unacceptable to us. Each insurance policy must contain a waiver by the insurance company of subrogation rights against Franchisor, its affiliates, and their successors and assigns. You are required to provide us with evidence of all required insurance coverage and payment of premiums at the times we require. At least thirty (30) days before each insurance policy expires, you are required to furnish a copy of renewal or replacement insurance and evidence of payment of the premium. Your obligation to obtain coverage is not limited by insurance that we maintain.
- 9.2. Changes. We have the right to increase the amounts of insurance coverage required and to require different or additional kinds of insurance. If you do not have the insurance required by this Agreement, we have the right (but no obligation) to obtain insurance on your behalf. If we do so, you agree to reimburse us for the cost of insurance, plus a reasonable fee for our services.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, franchisees must maintain specific types and minimum amounts of insurance coverage and bonds for their Franchised Businesses. These insurance policies must be written by carriers with an industry rating acceptable to Benjamin Franklin Plumbing. The policies must also name Benjamin Franklin Plumbing, its affiliates, and their respective officers, directors, shareholders, and employees as additional insureds, as directed by the franchisor. The insurance policies should not include deductibles, exclusions, or co-insurance that are unacceptable to Benjamin Franklin Plumbing.
Each insurance policy must contain a waiver by the insurance company of subrogation rights against Benjamin Franklin Plumbing, its affiliates, and their successors and assigns. Franchisees are required to provide evidence of all required insurance coverage and payment of premiums at the times specified by Benjamin Franklin Plumbing. At least thirty days before each insurance policy expires, franchisees must furnish a copy of renewal or replacement insurance and evidence of premium payment.
Benjamin Franklin Plumbing retains the right to increase the required amounts of insurance coverage and to mandate different or additional kinds of insurance. If a franchisee fails to maintain the required insurance, Benjamin Franklin Plumbing has the right, but not the obligation, to obtain insurance on the franchisee's behalf, with the franchisee responsible for reimbursing Benjamin Franklin Plumbing for the cost of the insurance plus a reasonable service fee. This ensures that all Benjamin Franklin Plumbing locations maintain adequate protection, aligning with standard franchising practices where franchisors set insurance requirements to protect the brand and network.