What documentation must a Bhc franchisee provide to the Franchisor regarding their insurance policies?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must provide Franchisor a copy of the policy and endorsement upon issuance and upon every renewal.
Franchisee hereby grants Franchisor a waiver of any right of subrogation which any insurer of Franchisee may acquire against Franchisor by virtue of payment of any loss under such insurance.
This provision applies regardless of whether Franchisor has received a waiver of subrogation endorsement from the insurer.
Franchisee's obligation to obtain and maintain the foregoing policies of insurance in the amount specified will not be limited in any way by reason of any insurance that may be maintained by Franchisor, nor will Franchisee's procurement of required insurance relieve it of liability under the indemnity provisions set forth in section 16.2 of this Agreement.
Franchisee's insurance procurement obligations under this section 8.9 are separate and independent of Franchisee's indemnity obligations under section 16.2 of this Agreement.
- (b) Within 30 days after the Opening Date and promptly after each succeeding anniversary of the Opening Date, Franchisee must promptly notify Franchisor of any and all claims against Franchisee and/or Franchisor under said policies of insurance and deliver to Franchisor a certificate evidencing such insurance is in full force and effect.
Such insurance certificate must contain a statement to the effect the certificate cannot be canceled without 30 days prior written notice to Franchisee and to Franchisor.
Franchisee must notify Franchisor in writing immediately regarding any cancellation, non-renewal or reduction in coverage or limits.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must provide several documents to the franchisor regarding their insurance policies. Upon issuance and every renewal of the insurance policy, the franchisee must provide Bhc with a copy of the policy and any endorsements.
Within 30 days after the opening date of the franchise and promptly after each anniversary of the opening date, the franchisee must notify Bhc of any claims made against them or Bhc under the insurance policies. Additionally, the franchisee must deliver a certificate to Bhc as evidence that the required insurance is in full force and effect. This certificate must also include a statement confirming that the policy cannot be canceled without providing 30 days prior written notice to both the franchisee and Bhc.
The franchisee is also obligated to notify Bhc immediately in writing regarding any cancellation, non-renewal, or reduction in the coverage or limits of their insurance policy. Failing to maintain the required insurance coverage is considered a material breach of the franchise agreement, potentially allowing Bhc to procure insurance on the franchisee's behalf and charge the franchisee for the costs incurred.