What must the insurance certificate for a Bens Soft Pretzels franchise show?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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 demonstrate that Bens Soft Pretzels and its affiliates are listed as additional insured parties. Furthermore, the certificate must guarantee that Bens Soft Pretzels will receive a written notice 30 days in advance of any significant changes, termination, or cancellation of the insurance policy.
This requirement ensures that Bens Soft Pretzels is protected and informed about the franchisee's insurance coverage. By being named as an additional insured, Bens Soft Pretzels can directly benefit from the franchisee's insurance policies in case of a claim. The 30-day notice period allows Bens Soft Pretzels time to assess the impact of any changes to the insurance coverage and take necessary actions to protect their interests.
For a prospective franchisee, this means they must ensure their insurance policies meet these specific requirements and that the insurance certificate accurately reflects this. Failing to comply with these insurance requirements could result in a breach of the franchise agreement and potential penalties. It is a common practice in franchising to have such requirements to protect the brand and the franchisor from potential liabilities arising from the franchisee's operations.