What must a Bhc franchisee's insurance certificate contain regarding cancellation?

According to Bhc's 2025 Franchise Disclosure Document, the insurance certificate that a franchisee provides must include a statement indicating that the policy cannot be canceled without giving both the franchisee and Bhc a 30-day prior written notice. This requirement ensures that Bhc is informed well in advance if a franchisee's insurance coverage is at risk of termination.

This stipulation is in place to protect Bhc from potential liabilities and risks associated with a franchisee operating without adequate insurance. By requiring a 30-day notice, Bhc has time to ensure the franchisee renews their policy or, if necessary, to take other measures to protect its interests. The franchisee is also obligated to notify Bhc immediately in writing if there is any cancellation, non-renewal, or reduction in the coverage or limits of their insurance policy.

Failure to maintain the required insurance coverage is considered a material breach of the franchise agreement. If a franchisee fails to procure and maintain the necessary insurance, Bhc has the option, but not the obligation, to obtain insurance coverage on behalf of the franchisee. In such cases, the franchisee will be charged for the cost of the insurance, along with a reasonable fee to cover Bhc's expenses. This underscores the importance of franchisees maintaining continuous and adequate insurance coverage as specified by Bhc.