What 'cause of loss coverage form' is required for Better Blend franchisees' insurance?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business Interruption Insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written n
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are required to obtain insurance that includes "Special" causes of loss coverage forms. This coverage must include protection against fire and extended coverage, crime, vandalism, and malicious mischief. This insurance applies to all property of the Better Blend business and must cover the full repair and replacement value, although it is subject to a reasonable deductible.
In addition to the "Special" causes of loss coverage, Better Blend franchisees must also secure other types of insurance. These include Business Interruption Insurance covering at least 12 months of income, Commercial General Liability insurance with specified limits, Business Automobile Liability insurance, and Workers Compensation coverage as mandated by state law.
The insurance policies, with the exception of Workers Compensation, must list Better Blend and its affiliates as additional insured parties. These policies must also include a waiver of subrogation in favor of Better Blend and its affiliates, ensuring that the franchisee's insurance is the primary coverage and does not rely on any insurance held by Better Blend. Furthermore, the insurance provider must give Better Blend 30 days' prior written notice of any policy cancellation.
These insurance requirements are designed to protect both the franchisee and Better Blend from potential financial losses due to unforeseen events. Franchisees should carefully review these requirements with their insurance provider to ensure full compliance and adequate coverage.