What is the minimum aggregate limit for the required general liability insurance for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
r Better Blend's national or regional brand convention, regardless of whether the Principal Executive attends. Franchisee is responsible for all travel and living expenses of attending any such meeting or convention.
7.15 Insurance.
- (a) Franchisee shall obtain and maintain insurance policies in the types and amounts as specified by BBF in the Manual. If not specified in the Manual, Franchisee shall maintain at least the following insurance coverage:
- (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.
- (b) Franchisee's policies (other than Workers Compensation) must (1) list BBF and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of BBF and its affiliates, (3) be primary and non-contributing with any insurance carried by BBF or its affiliates, and (4) stipulate that BBF shall receive 30 days' prior written notice of
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees must 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 means that a Better Blend franchisee needs to secure a general liability insurance policy that can cover up to $1,000,000 for a single incident and up to $2,000,000 for all incidents within the policy period (typically a year). The policy must list Better Blend Franchising, LLC and its affiliates as additional insured parties and include a waiver of subrogation in their favor. It must also be primary and non-contributing with any insurance carried by Better Blend or its affiliates.
Furthermore, the insurance policy must stipulate that Better Blend receives 30 days' prior written notice of cancellation. Franchisees must provide Certificates of Insurance evidencing the required coverage to Better Blend prior to opening and upon annual renewal of the insurance coverage, as well as any time within 15 days after request from Better Blend. These stipulations ensure that Better Blend is protected from potential liabilities arising from the franchisee's operations and has advance warning if a franchisee's insurance coverage is terminated.
Meeting these insurance requirements is a crucial aspect of operating a Better Blend franchise, as it protects both the franchisee and the franchisor from financial losses due to unforeseen events. Franchisees should factor in the cost of this insurance when assessing the overall investment required to start and run the franchise.