Can Big Apple Bagels increase the required insurance coverage amounts for franchisees?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may periodically increase the amounts of coverage required under such insurance policies and require different or additional kinds of insurance at any time, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels has the right to periodically increase the required insurance coverage amounts for franchisees. They can also require different or additional kinds of insurance at any time. This includes excess liability insurance.
The reasons for these changes can include inflation, identification of new risks, changes in law or standards of liability, and higher damage awards. This flexibility allows Big Apple Bagels to ensure that franchisees maintain adequate protection against potential liabilities and risks that may arise during the operation of their business.
For a prospective Big Apple Bagels franchisee, this means that insurance costs could increase over time. It is important to factor in potential future increases when evaluating the financial feasibility of the franchise. Franchisees should maintain open communication with Big Apple Bagels to stay informed about any upcoming changes to insurance requirements and understand the reasons behind them.