Who must the Bens Soft Pretzels franchisee's insurance policy insure?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase and maintain in full force and effect, at your expense and from a company we accept, insurance that insures both you and us, our affiliates and any other persons we designate by name.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the franchisee's insurance policy must cover the franchisee, Bens Soft Pretzels, its affiliates, and any other persons designated by name by Bens Soft Pretzels.
This requirement means that a franchisee's insurance policy needs to provide coverage not only for their own business operations but also protect Bens Soft Pretzels from potential liabilities. This is a common practice in franchising, as it ensures that the franchisor is shielded from risks associated with the franchisee's business activities. The franchisee will need to ensure that their insurance policy includes Bens Soft Pretzels and its affiliates as additional insured parties.
Prospective franchisees should carefully review the specific insurance requirements outlined in the Franchise Agreement and consult with an insurance professional to obtain the necessary coverage. Failing to maintain adequate insurance can result in the franchisor procuring insurance on the franchisee's behalf and charging the franchisee for the costs, potentially with additional fees. Franchisees should also be aware that Bens Soft Pretzels may modify the required minimum insurance limits and coverages over time, requiring them to adjust their policies accordingly.