When must a Bens Soft Pretzels franchisee deliver a certificate of insurance coverage?
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 upon execution of the lease or purchase agreement for the authorized location. This certificate must be delivered before the franchisee begins construction of their store. After this initial delivery, the franchisee must provide the certificate annually or at Bens Soft Pretzels's request.
The insurance certificate must demonstrate that Bens Soft Pretzels and its affiliates are listed as additional insured parties. Additionally, the certificate must guarantee that Bens Soft Pretzels will receive a 30-day prior written notice regarding any significant changes, termination, or cancellation of the insurance policy.
This requirement ensures that Bens Soft Pretzels has adequate protection against potential liabilities and risks associated with the operation of the franchise. By requiring the franchisee to provide proof of insurance coverage at specific intervals, Bens Soft Pretzels can verify that the franchisee maintains the necessary coverage throughout the term of the franchise agreement. This is a common practice in franchising, as it protects both the franchisor and franchisee from financial losses due to unforeseen events.