As a Bevaris Alliance Franchisee, is the Franchisor's interest required to be noted on the insurance policies?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3 Franchisor's interest. The Franchisor's interest should be noted on the policies of insurance as an additional insured, and which shall state that the Franchisor is to receive notice of any late payment of a premium and at least 30 days' notice of cancellation.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, as a franchisee, you are required to note the franchisor's interest on your insurance policies. Specifically, Bevaris Alliance must be listed as an additional insured on the policies.
This requirement ensures that Bevaris Alliance is protected by the franchisee's insurance coverage. Additionally, the insurance policy must state that Bevaris Alliance will receive notification of any late premium payments and at least 30 days' notice if the policy is canceled.
This is a fairly standard practice in franchising, as it protects the franchisor's brand and business interests. Franchisees must also provide Bevaris Alliance with copies of all insurance policies and renewals to ensure compliance. If a franchisee fails to maintain the required insurance, Bevaris Alliance has the right to obtain the necessary coverage and charge the franchisee for all associated costs.