What Best rating must the insurance company have to be satisfactory to Boulder Designs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain insurance, at your expense, with policy limits as required by us, applicable law, your landlord, and lender or otherwise. The policies must be written by an insurance company reasonably satisfactory to us with a Best rating of "A-" or better and include the risks, amount of coverage and deductibles as stated below. We reserve the right to increase the minimum insurance requirements.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees must obtain and maintain insurance policies from a company with a Best rating of "A-" or better. This requirement ensures that the insurance provider is financially stable and capable of meeting potential claims.
For a prospective Boulder Designs franchisee, this means they cannot choose just any insurance company. They must select one that meets Boulder Designs' minimum rating standard. This might limit their options and potentially increase insurance costs, as higher-rated companies may charge higher premiums.
Boulder Designs also reserves the right to increase the minimum insurance requirements, which could further impact a franchisee's costs. It is important for potential franchisees to factor in these insurance requirements and potential future increases when evaluating the overall investment and operating costs of a Boulder Designs franchise. Franchisees should also consult with their own insurance advisor to ensure they have adequate coverage to protect their business assets.