What is the minimum coverage period for Business Interruption Insurance that Better Blend franchisees must carry?
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 several types of insurance coverage. Among these is Business Interruption Insurance, which must cover at least 12 months of income. This insurance is designed to protect the franchisee's income stream in the event that the business is temporarily shut down due to unforeseen circumstances such as fire, natural disasters, or other covered events.
In practical terms, this means a Better Blend franchisee needs to secure a policy that will replace their income for up to a year if they are unable to operate their business. This requirement ensures that franchisees have a financial safety net to cover ongoing expenses and personal financial obligations during a period of business interruption. The cost of this insurance will vary depending on factors such as the location of the business, the estimated income, and the specific terms of the policy.
In addition to Business Interruption Insurance, Better Blend requires franchisees to carry other types of insurance, including property insurance, commercial general liability insurance ($1,000,000 single limit per occurrence and $2,000,000 aggregate limit), business automobile liability insurance ($1,000,000), and workers' compensation coverage as required by state law. Franchisees must also ensure that Better Blend and its affiliates are listed as additional insured on their policies (excluding Workers Compensation), and that the policies include a waiver of subrogation in favor of Better Blend and its affiliates. Furthermore, Better Blend requires 30 days' prior written notice of cancellation of the insurance policies.