What notice of cancellation period is required for all insurance policies for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
We must be named as additional insured on all of these policies, except for worker's compensation insurance, and provide us with the additional insured endorsement for each policy. All insurance policies must include a waiver of subrogation in favor of us and our affiliates, and each company's officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, and must include a 30-day notice of cancellation directed to both you and to us or the person we designate.
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, all insurance policies must include a 30-day notice of cancellation. This notice must be directed to both the franchisee and Boulder Designs, or to a person designated by Boulder Designs.
This requirement ensures that Boulder Designs is informed if a franchisee's insurance policy is canceled, allowing them time to ensure continuous coverage. This protects both the franchisee's business and Boulder Designs' brand and financial interests. The franchisee is responsible for maintaining several types of insurance, including property, liability, workers' compensation, and vehicle insurance, with specific coverage amounts detailed in the FDD.
It is standard practice in franchising for franchisors to require franchisees to maintain adequate insurance coverage and to be notified of any policy cancellations. This helps mitigate risks and ensures that franchisees meet their contractual obligations. The franchisee must also name Boulder Designs as an additional insured on all policies (except worker's compensation) and provide them with the additional insured endorsement for each policy. Additionally, all insurance policies must include a waiver of subrogation in favor of Boulder Designs and its affiliates.