What must a Bhc franchisee provide to the franchisor as evidence of required insurance coverage?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
irectly to our required third-party insurer. 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, a franchisee must provide a proper certificate as evidence of the required insurance coverage. This certificate must be delivered to Bhc upon commencing leasehold improvements of the Master Franchised Bhc Restaurant, and thereafter annually or at Bhc's request.
The insurance certificate must contain a statement indicating that the coverage cannot be canceled without providing 30 days prior written notice to both the franchisee and Bhc. This requirement ensures that Bhc is aware of any potential lapse in insurance coverage, allowing them to take necessary actions to protect their interests.
This requirement is standard practice in franchising, as franchisors need to ensure that franchisees maintain adequate insurance to cover potential liabilities and protect the brand's reputation. By requiring a certificate with a 30-day cancellation notice, Bhc can monitor franchisees' compliance and mitigate risks associated with uninsured operations. The franchisee pays insurance merchandise directly to Bhc's required third-party insurer.