What happens if a Bevaris Alliance Franchisee breaches their insurance policies?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
nity coverage;
- (f) liability for damage to property (including to the Premises, equipment and any vehicles used in the Franchisee's Business);
- (g) loss of profits and interruption of the Franchisee's Business; and
- (h) any other coverage which the Franchisor may, in its absolute discretion, specify.
- 13.2 Compliance with insurance policies. The Franchisee shall not breach, or allow any breach of, such insurance policies.
- 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 the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are required to maintain all-risk insurance policies with a reputable insurance company, covering various liabilities and potential business interruptions. These policies must include coverage for the franchisee's business, products and services, employees, third parties, public liability, workers' compensation, indemnity, property damage, loss of profits, and any other coverage the franchisor specifies.
The Bevaris Alliance franchisee is obligated to comply with all terms of their insurance policies and must not breach or allow any breach of these policies. The franchisor's interest must be noted on the insurance policies as an additional insured, ensuring they receive notifications of late premium payments and at least 30 days' notice of cancellation. Franchisees must also provide copies of all insurance policies and renewals to Bevaris Alliance.
If a Bevaris Alliance franchisee fails to obtain and maintain the required insurance policies, the franchisor has the right to take out the policies themselves. In such cases, the franchisee is responsible for reimbursing Bevaris Alliance for all costs and expenses incurred in obtaining the insurance. This provision ensures that the franchise location remains insured, protecting both the franchisee and the franchisor from potential liabilities and financial losses.