What is the deadline for a Boulder Designs franchisee to procure the required insurance policies after the Effective Date?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
If applicable and at its sole expense, Franchisee shall procure within 30 days of the Effective Date, and maintain in full force and effect during the term of this Agreement, the types of insurance listed below. All
policies (except any workers' compensation insurance) shall expressly name Franchisor as additional insured's or loss payees and shall contain a waiver of all subrogation rights against Franchisor and its successors and assigns. In addition to any other insurance that may be required by applicable law, or by lender or lessor, Franchisee shall procure:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a new franchisee must procure the required insurance policies within 30 days of the Effective Date of the Franchise Agreement. The Effective Date is defined in the FDD as the date stated in the introductory paragraph of the agreement, which commences the agreement's effectiveness and term.
The insurance policies that Boulder Designs franchisees must obtain include "all risk" property insurance, general commercial liability insurance (not less than $1,000,000 per occurrence with a $2,000,000 general aggregate), comprehensive general liability insurance (not less than $30,000 per occurrence with a $30,000 general aggregate), workers' compensation insurance, vehicle replacement insurance (around $30,000), and automobile liability coverage (not less than $1,000 combined single limit). All policies, except workers' compensation, must name Boulder Designs as an additional insured and include a waiver of subrogation rights against Boulder Designs.
It is important to note that Boulder Designs has the right to increase the minimum liability protection requirement annually and require different or additional insurance coverages to reflect inflation, changes in liability standards, future damage awards, or other relevant changes. Franchisees must provide Boulder Designs with certificates of coverage at least annually. If a franchisee fails to provide the certificate of insurance, Boulder Designs may purchase the insurance on behalf of the franchisee, and the franchisee must immediately reimburse Boulder Designs for the expenses and premiums paid.