What is the deadline for providing the certificate of insurance for a Bens Soft Pretzels Mobile Store?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
The insurance coverages referenced in (iii), (iv), (vi), (vii), (viii), (ix), (x), (xi), (xii) and (xiii) must commence as of the date you sign this Agreement. The insurance coverages referenced in (i), (ii) and (v) of this subparagraph must commence as of the date construction begins at the Store. You must deliver to us at commencement and annually or at our request a proper certificate evidencing the existence of such insurance coverage and your compliance with the provisions of this subparagraph. The insurance certificate must show our status as an additional insured and provide that we will be given 30 days' prior written notice of a material change in or termination or cancellation of the policy. We also may request copies of all policies. We may from time to time modify the required minimum limits and require additional insurance coverages, by providing written notice to you, as conditions require, to reflect changes in relevant circumstances, industry standards, experiences in the BEN'S SOFT PRETZELS system, standards of liability and higher damage awards. If you do not procure and maintain the required insurance coverage required by this Agreement, we have the right, but not the obligation, to procure insurance coverage and to charge the costs to you, together with a reasonable fee for the expenses we incur in doing so. You must pay these amounts to us immediately upon written notice.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, a franchisee must provide a certificate of insurance at the commencement of the agreement and annually thereafter, or upon request. For specific insurance coverages referenced in clauses (i), (ii), and (v), the insurance must be in place by the date construction begins at the store.
The certificate serves as proof that the franchisee has secured the required insurance coverage and is compliant with the insurance provisions outlined in the franchise agreement. The certificate must also list Bens Soft Pretzels as an additional insured party and stipulate that Bens Soft Pretzels will receive 30 days' prior written notice of any material changes, termination, or cancellation of the insurance policy.
If a franchisee fails to maintain the required insurance coverage, Bens Soft Pretzels has the right, but not the obligation, to procure the necessary insurance and charge the franchisee for the costs incurred, including a reasonable fee for expenses. The franchisee is then obligated to pay these amounts immediately upon receiving written notice from Bens Soft Pretzels.