What recourse does Boulder Designs have if a franchisee fails to provide a certificate of insurance?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must provide Franchisor with certificates of coverage at least annually. If Franchisee fails to provide the certificate of insurance, Franchisor (in addition to all other rights and remedies) may purchase such insurance in the name of and on behalf of Franchisee, and Franchisee shall immediately reimburse Franchisor's expenses and premiums paid to obtain such insurance.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are required to provide Boulder Designs with certificates of coverage at least annually. If a franchisee fails to provide this certificate, Boulder Designs has the right to purchase the required insurance on behalf of the franchisee.
In such a case, the franchisee is obligated to immediately reimburse Boulder Designs for all expenses and premiums paid to obtain the insurance. This is in addition to any other rights and remedies Boulder Designs may have under the franchise agreement.
This provision ensures that all Boulder Designs locations maintain the necessary insurance coverage, protecting both the franchisee and franchisor from potential liabilities. It also places the financial burden of non-compliance directly on the franchisee, incentivizing them to maintain proper insurance and provide the required documentation in a timely manner.