What is the minimum aggregate limit for Commercial General Liability insurance that Better Blend franchisees must obtain?
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 maintain Commercial General Liability insurance with specific coverage limits. This insurance must include products liability coverage and broad form commercial liability coverage, written on an "occurrence" policy form. The minimum coverage required is $1,000,000 single limit per occurrence and $2,000,000 aggregate limit.
This requirement ensures that Better Blend franchisees have adequate financial protection against potential liabilities arising from accidents or injuries on the premises, or from the products they sell. The aggregate limit of $2,000,000 means that the insurance policy will cover up to this amount for all claims made during the policy period. Franchisees must secure this coverage to operate legally and in compliance with Better Blend's standards.
In addition to the Commercial General Liability insurance, Better Blend franchisees must also obtain other types of insurance, including property insurance, business interruption insurance, business automobile liability insurance, and workers' compensation coverage. The policies, except for Workers Compensation, must list Better Blend and its affiliates as additional insured, include a waiver of subrogation, be primary and non-contributing with any insurance carried by Better Blend, and stipulate that Better Blend receives 30 days' prior written notice of cancellation. These stipulations protect Better Blend from potential liabilities related to the franchisee's operations and ensure that the franchisor is informed of any changes to the franchisee's insurance coverage.
Meeting these insurance requirements is a crucial aspect of operating a Better Blend franchise, and franchisees should factor the cost of these policies into their initial investment and ongoing operating expenses. Prospective franchisees should consult with insurance professionals to obtain quotes and ensure they understand the terms and conditions of the required coverage.