What is the minimum amount of Business Automobile Liability insurance Better Blend franchisees are required to have?
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 must maintain Business Automobile Liability insurance with a minimum coverage of $1,000,000. This insurance must cover owned, leased, non-owned, and hired automobiles.
This requirement means that a Better Blend franchisee needs to secure an insurance policy that meets this minimum liability coverage to protect against potential financial losses resulting from automobile accidents involving vehicles used in the business. The policy must include coverage for vehicles the franchisee owns, leases, or uses for business purposes, even if they are not owned by the franchisee.
Better Blend also requires that the insurance policy lists Better Blend and its affiliates as additional insured parties and includes a waiver of subrogation in their favor. Additionally, the policy must be primary and non-contributing with any insurance carried by Better Blend or its affiliates and stipulate that Better Blend receives 30 days' prior written notice of cancellation. These stipulations protect Better Blend from potential liabilities and ensure they are informed of any changes to the franchisee's insurance coverage.