Can Beverly Anns Cookie require additional insurance coverage periodically?
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 may periodically increase the amounts of required insurance coverage or require different or additional insurance coverage. This can occur 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 their Brand Manual, as amended from time to time.
The insurance policies must be purchased from an insurance company satisfactory to Beverly Anns Cookie and provide for 30 days prior written notice to them of a policy's material modification, cancellation, or expiration. Franchisees have the option to purchase 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.
Franchisees must routinely furnish Beverly Anns Cookie with copies of their certificates of insurance or other evidence of maintaining insurance coverage and paying premiums. If a franchisee fails to maintain any required insurance coverage, Beverly Anns Cookie has the right to obtain the coverage on the franchisee's behalf. The franchisee must promptly sign all applications and other forms and instruments required to obtain the insurance and pay Beverly Anns Cookie, within ten days after invoicing, all costs and premiums that they incur, plus a 20% administrative surcharge.
If a franchisee's state requires higher coverages than Beverly Anns Cookie prescribes, the franchisee will be required to obtain insurance that satisfies their state law requirements. This means that franchisees need to stay informed about both Beverly Anns Cookie's requirements and their own state's regulations to ensure they have adequate coverage. The potential for increased insurance costs and the administrative surcharge for non-compliance are important financial considerations for prospective franchisees.