What advance written notice is required before a Bhc insurance certificate can be canceled?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
You must deliver to us upon commencing leasehold improvement of your Master Franchised BHC Restaurant, and thereafter annually or at our request, a proper certificate evidencing the existence of the required insurance coverage.
Such insurance certificate must contain a statement to the effect the certificate cannot be canceled without 30 days prior written notice to you and us.
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the insurance certificate that a franchisee must provide should contain a statement indicating that the certificate cannot be canceled without providing 30 days prior written notice to both the franchisee and Bhc.
This requirement ensures that Bhc and the franchisee are informed well in advance if the insurance coverage is at risk of being canceled. This advance notice allows both parties sufficient time to secure replacement coverage, preventing any lapse in the required insurance.
The stipulation protects Bhc from potential liabilities and operational disruptions that could arise if a franchisee's restaurant is uninsured. It also protects the franchisee by ensuring they maintain continuous coverage, which is likely a requirement of their lease and other agreements. This is a fairly standard clause in franchise agreements to ensure compliance and protect all parties involved.