What is the required action regarding insurance claims by an indemnified party in the Bhc franchise agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 notify Bhc of any insurance claims. Specifically, within 30 days after the opening date and promptly after each anniversary of the opening date, the franchisee must notify Bhc of any and all claims against the franchisee and/or Bhc under the insurance policies.
In addition to notifying Bhc of claims, the franchisee must also deliver to Bhc a certificate evidencing that such insurance is in full force and effect. The insurance certificate must contain a statement indicating that the certificate cannot be canceled without 30 days prior written notice to both the franchisee and Bhc.
Furthermore, the 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. This ensures that Bhc is promptly informed of any changes to the franchisee's insurance coverage that could potentially affect Bhc's interests as an additional insured.