What standards and specifications must the insurance policy or policies for a Bens Soft Pretzels franchise follow?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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. The insurance policy or policies must be written in accordance with the standards and specifications (including minimum coverage amounts) set forth in writing by us from time to time, and, at a minimum, must include the following (except as different coverages and policy limits may be specified for all franchisees from time to time in writing): (i) "special" causes of loss coverage forms (sometimes called "All Risk Coverage" or "All Peril Coverage") on the Store, store improvements and all furniture, fixtures, equipment, supplies and other property used in the operation of the Store, for full repair and replacement value, except that an appropriate deductible clause is permitted; (ii) business interruption insurance covering a minimum of 12 months loss of income, including coverage for our Royalty Fees (for example, in the event of a fire or destruction of the premises, the insurance must cover our average royalty payments (based on the previous 12-month timeframe, or if a shorter timeframe, the total operating timeframe for the store) during the rebuilding process); (iii) comprehensive general liability insurance including product liability insurance and contractual liability insurance, with minimum limits of $2,000,000 per occurrence and $2,000,000 to $5,000,000 annual aggregate; (iv) personal and advertising injury insurance with minimum limits of $2,000,000 per occurrence; (v) fire damage coverage in an amount sufficient to cover the replacement costs of the Store equipment, improvements and betterments; (vi) medical expense coverage in the amount of $10,000 to $25,000; (vii) workers' compensation insurance covering all of your employees; (viii) employers liability insurance with contingent liability; (ix) umbrella liability insurance; (x) automobile liability insurance; (xi) "Per Location" aggregate limits when multiple store locations are insured under one comprehensive general liability and umbrella liability policy (cies); (xii) Ben's Soft Pretzels Franchising Corporation and its affiliates are named as additional insureds on all liability policies required by this subparagraph; (xiii) severability of interest and/or separation of insureds provisions must be included in the liability policies and an endorsement is required providing that the franchisee's insurance is primary with respect to any insurance policy carried by Ben's Soft Pretzels Franchising Corporation and its affiliates and any insurance maintained by Ben's Soft Pretzels Franchising Corporation or its affiliates is excess and non-contributing; (xiv) a waiver of subrogation endorsement must be obtained; and (xv) any other such insurance coverages or amounts as required by law or other agreement r
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 policies a franchisee must maintain must adhere to specific standards and specifications set by Bens Soft Pretzels, which may change over time. The insurance certificate must list Bens Soft Pretzels and its affiliates as additional insured parties. Bens Soft Pretzels must receive 30 days' written notice before any material changes, termination, or cancellation of the policy.
The minimum insurance requirements include "special" causes of loss coverage on the store, store improvements, furniture, fixtures, equipment, and supplies at full repair and replacement value, though an appropriate deductible is permitted. Franchisees must also carry business interruption insurance covering a minimum of 12 months of lost income, including coverage for royalty fees. Comprehensive general liability insurance, including product and contractual liability insurance, is required with minimum limits of $2,000,000 per occurrence and between $2,000,000 and $5,000,000 annual aggregate.
Further insurance requirements include personal and advertising injury insurance with minimum limits of $2,000,000 per occurrence, fire damage coverage sufficient to cover the replacement costs of store equipment and improvements, and medical expense coverage in the amount of $10,000 to $25,000. Franchisees must also maintain workers' compensation insurance for all employees, employers liability insurance with contingent liability, umbrella liability insurance, and automobile liability insurance. If a franchisee operates multiple store locations under one policy, "Per Location" aggregate limits are required for comprehensive general liability and umbrella liability policies. The policy must include severability of interest and/or separation of insureds provisions, and a waiver of subrogation endorsement must be obtained. The franchisee's insurance must be primary with respect to any insurance policy carried by Bens Soft Pretzels and its affiliates, with any insurance maintained by Bens Soft Pretzels or its affiliates being excess and non-contributing. Finally, the policy must include any other insurance coverages or amounts required by law or other agreements related to the store.