What is the dependency between lease execution and insurance certificate delivery for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must deliver to us upon execution of the lease or purchase agreement for the Authorized Location, but before commencing construction of your Store, and thereafter 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 and our affiliates' status as an additional insured and provide that we will be given 30 days' prior written notice of material change in or termination or cancellation of the policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–22)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, a franchisee must provide a certificate of insurance coverage. This certificate must be delivered upon the execution of the lease or purchase agreement for the authorized location.
Importantly, this delivery must occur before the franchisee begins construction of their Bens Soft Pretzels store. The certificate serves as evidence that the franchisee has secured the necessary insurance coverage as mandated by Bens Soft Pretzels. Furthermore, the franchisee must provide this certificate annually or upon request by Bens Soft Pretzels, ensuring continuous compliance with insurance requirements.
The insurance certificate must also show Bens Soft Pretzels and its affiliates as additional insured parties. Additionally, the certificate must guarantee that Bens Soft Pretzels will receive a 30-day prior written notice regarding any material changes, termination, or cancellation of the insurance policy. This requirement protects Bens Soft Pretzels by ensuring they are informed of any changes to the franchisee's insurance coverage that could affect their interests.