What documentation must a Bhc Master Franchisee provide to the Franchisor regarding their insurance policies?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Master Franchisee must provide Franchisor a copy of the policy and endorsement upon issuance and upon every renewal. Master Franchisee hereby grants Franchisor a waiver of any right of subrogation which any insurer of Master 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. Master 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 Master Franchisee's procurement of required insurance relieve it of liability under the indemnity provisions set forth in section 16.2 of this Agreement. Master Franchisee's insurance procurement obligations under this section 8.9 are separate and independent of Master 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, Master Franchisee must promptly notify Franchisor of any and all claims against Master 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 Master Franchisee and to Franchisor. Master Franchisee must notify Franchisor in writing immediately regarding any cancellation, non-renewal or reduction in coverage or limits.
- (c) Master Franchisee's failure, for any reason, to procure and maintain the insurance coverage required under this Agreement, will be deemed a material breach of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must provide several documents to the Franchisor regarding their insurance policies. Upon issuance and every renewal of the insurance policy, the Master Franchisee must provide Bhc with a copy of the policy and any endorsements. This ensures Bhc is aware of the coverage details and any changes to the policy.
Within 30 days after the Opening Date and promptly after each succeeding anniversary, the Master Franchisee must notify Bhc of any claims against them or Bhc under the insurance policies. They must also deliver a certificate of insurance, proving that the insurance is currently active and in full effect. This certificate must also state that the policy cannot be canceled without providing 30 days prior written notice to both the Master Franchisee and Bhc.
Additionally, the Master Franchisee is obligated to notify Bhc in writing immediately if there is any cancellation, non-renewal, or reduction in coverage or limits of their insurance policy. Failing to maintain the required insurance coverage is considered a material breach of the Master Franchise Agreement, highlighting the importance of these obligations.