Can Beverly Anns Cookie increase the required insurance coverage amounts at any time?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
If your state requires higher coverages than we prescribe, you will be required to obtain insurance that satisfies your state law requirements. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances as provided in our Brand Manual, as amended from time to time. These insurance policies must be purchased from an insurance company satisfactory to us and provide for 30 days prior written notice to us of a policy's material modification, cancellation, or expiration. You may purchase this insurance through our captive insurance program, which is offered through our affiliate. Each insurance policy must contain a waiver of all subrogation rights against us, our affiliates, and their successors and assigns. You must routinely furnish us copies of your certificates of insurance or other evidence of your maintaining this insurance coverage and paying premiums. If you fail to maintain any required insurance coverage, we have the right to obtain the coverage on your behalf (which right shall be at our option and in addition to our other rights and remedies in this Franchise Agreement), and you must promptly sign all applications and other forms and instruments required to obtain the insurance and pay to us, within ten days after invoicing, all costs and premiums that we incur, plus a 20% administrative surcharge.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie can periodically increase the required insurance coverage amounts. They may also require different or additional insurance coverage at any time. These changes can reflect inflation, the identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. These changes will be provided in their Brand Manual, as amended from time to time.
Beverly Anns Cookie requires that the insurance policies be purchased from an insurance company that is satisfactory to them. The insurance policy must provide for 30 days prior written notice to Beverly Anns Cookie of a policy's material modification, cancellation, or expiration. Franchisees may purchase this insurance through Beverly Ann's Cookie's captive insurance program, which is offered through their affiliate. Each insurance policy must contain a waiver of all subrogation rights against Beverly Anns Cookie, their affiliates, and their successors and assigns.
As a franchisee, you must routinely furnish Beverly Anns Cookie with copies of your certificates of insurance or other evidence of your maintaining this insurance coverage and paying premiums. If you fail to maintain any required insurance coverage, Beverly Anns Cookie has the right to obtain the coverage on your behalf. If Beverly Anns Cookie obtains the insurance coverage, you must promptly sign all applications and other forms and instruments required to obtain the insurance and pay to them, within ten days after invoicing, all costs and premiums that they incur, plus a 20% administrative surcharge.