What is the required notice period for cancellation of insurance coverage for Bhc franchisees?

According to Bhc's 2025 Franchise Disclosure Document, the insurance certificate must include a statement indicating that the policy cannot be canceled without providing 30 days prior written notice to both the franchisee and Bhc. This requirement ensures that Bhc and the franchisee have adequate time to secure replacement coverage and avoid any lapse in insurance, which is considered a material breach of the franchise agreement.

This 30-day notice period is a standard practice in franchising, allowing the franchisor to protect its brand and reputation by ensuring all franchisees maintain adequate insurance coverage. Bhc also requires the franchisee to notify them immediately in writing if there is any cancellation, non-renewal, or reduction in coverage or limits. This immediate notification is in addition to the 30-day notice required on the insurance certificate.

If a Bhc franchisee fails to maintain the required insurance coverage, Bhc has the option, but not the obligation, to procure insurance on the franchisee's behalf. The franchisee would then be responsible for covering the costs of this insurance, along with a reasonable fee for Bhc's expenses. This provision protects Bhc from potential liabilities arising from a franchisee's under-insured or uninsured operations, while also ensuring the franchisee's business remains compliant with the franchise agreement.