Is a Black Bear Diner franchisee's obligation to maintain insurance coverage affected by any insurance maintained by the franchisor?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's obligation to obtain and maintain the foregoing policy or policies shall not be limited in any way by reason of any insurance which may be maintained by Franchisor, nor shall Franchisee's performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 20 of this Agreement. Franchisee agrees to provide annually a certificate of insurance, insurance policy endorsements and other evidence of compliance with the foregoing requirements. Such certificate shall state that said policy or policies shall not be canceled or altered without at least thirty (30) days prior written notice to Franchisor and shall reflect proof of payment of premiums.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, a franchisee's obligation to obtain and maintain insurance policies is not limited by any insurance that Black Bear Diner may maintain. The franchisee's performance in maintaining their own insurance does not relieve them of liability under the indemnity provisions outlined in the Franchise Agreement.
Black Bear Diner requires franchisees to provide annual proof of insurance coverage, including a certificate of insurance and policy endorsements. This certificate must state that the policy will not be canceled or altered without at least thirty days prior written notice to Black Bear Diner and must show proof of premium payments.
If a franchisee fails to maintain the required insurance coverage, Black Bear Diner has the right, but not the obligation, to procure such insurance coverage. This ensures that the restaurant remains compliant with insurance requirements, although the responsibility ultimately falls on the franchisee.