What does the borrower certify to the lender regarding the equipment for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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If this box is marked, then under the terms of your Loan, you are required to carry adequate insurance coverage on financed equipment. Your insurance certificate is required prior to us funding your vendor. Homeowners Policies will not cover commercial financing. YOUR LOAN MAY NOT BE FUNDED UNTIL WE RECEIVE THIS INFORMATION.
Please provide a Certificate of Insurance showing the following:
- Above referenced Agreement #
- Name of the Insurance Company and Policy Number
- Effective and Expiration Date of Coverage.
- INSURED PARTY: The Borrower(s) listed above must be named as Insured.
- PHYSICAL DAMAGE INSURANCE: Lender must be named Loss Payee against any loss including fire, theft and any other standard peril normally covered under a commercial policy for an amount not less than the replacement cost of the equipment.
- LENDER AS LOSS PAYEE/ADDITIONAL INSURED
- DESCRIPTION OF EQUIPMENT: A description of equipment covered (including serial numbers) must be listed on or attached to the Certificate of Insurance.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie FDD, if a franchisee is taking out a loan to finance equipment, they may be required to carry adequate insurance coverage on the financed equipment. The franchisee's insurance certificate is required before the vendor is funded, and homeowner's policies will not cover commercial financing. The loan may not be funded until this information is received.
The certificate of insurance must include the referenced agreement number, the name of the insurance company and policy number, and the effective and expiration dates of coverage. The borrower(s) must be named as the insured party. The lender must be named as the loss payee against any loss, including fire, theft, and any other standard peril normally covered under a commercial policy, for an amount not less than the replacement cost of the equipment.
Additionally, the lender must be listed as the loss payee/additional insured, and a description of the equipment covered, including serial numbers, must be listed on or attached to the certificate of insurance. This ensures that the lender is protected in case of damage or loss to the equipment and that the equipment is adequately insured.