What must the insurance certificate for a Bens Soft Pretzels franchise evidence?
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, the insurance certificate must evidence that Bens Soft Pretzels and its affiliates are listed as additional insured parties. This protects Bens Soft Pretzels from potential liabilities arising from the franchisee's operations. The certificate must also guarantee that Bens Soft Pretzels will receive written notification 30 days in advance of any significant changes, termination, or cancellation of the insurance policy. This advance notice allows Bens Soft Pretzels time to ensure continuous coverage and address any potential gaps.
This requirement ensures that Bens Soft Pretzels is kept informed about the franchisee's insurance status and has the opportunity to protect its interests. It is a common practice in franchising to require franchisees to maintain adequate insurance coverage and to include the franchisor as an additional insured. This protects the franchisor from potential liabilities arising from the franchisee's operations.
Furthermore, the franchisee must deliver this insurance certificate upon executing the lease or purchase agreement for the authorized location, but before starting construction of the store. This certificate must be provided annually thereafter or at Bens Soft Pretzels's request. This ongoing requirement ensures that the franchisee maintains the necessary insurance coverage throughout the term of the franchise agreement.