Does Boulder Designs require franchisees to obtain surety bonds?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- a. "all risk" property insurance, including business interruption insurance, customarily obtained by similar businesses in your general area to cover, at a minimum, all assets including inventory, furniture, fixtures, equipment, supplies and other property used in the operation of your Boulder Designs Business; and
- b. General commercial liability insurance in an amount of not less than $1,000,000 per occurrence with a $2,000,000 general aggregate; and
- c. Comprehensive general liability insurance, including products and contractual, in an amount of not less than $30,000 per occurrences with a $30,000 general aggregate; and
- d. Workers' compensation insurance for statutory limits and employer's liability insurance in an amount not less than $500,000; and
- e. Vehicle replacement insurance to cover the cost of acquiring a replacement vehicle, typically around $30,000; and
- f. Automobile liability coverage, including coverage of owned, non-owned and hired vehicles with coverage in amounts not less than $1,000 combines single limit.
- g. Franchisor's insurance requirements, including types of coverages and amount may change over time.
Section 15.2 Future Increases
Franchisor has the right to reasonably increase the minimum liability protection requirement annually and require different or additional insurance coverage(s) to reflect inflation, changes in standards of liability, future damage awards or other relevant changes in circumstances.
Section 15.3 Additional Insured; Certificates of Coverage
All insurance policies procured and maintained by Franchisee pursuant to this Agreement shall (a) name Franchisor as an additional insured; (b) waive any right to assert a claim back against Franchisor; and (c) undertake to notify Franchisor 30 days in advance of any cancellation or material change in the policy. Franchisee mus
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–9)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not explicitly state that Boulder Designs requires franchisees to obtain surety bonds. However, the document does outline various insurance requirements franchisees must meet.
Boulder Designs mandates that franchisees maintain several types of insurance, including "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. These policies must name Boulder Designs as an additional insured and provide the franchisor with certificates of coverage annually.
While surety bonds are not mentioned, franchisees should clarify with Boulder Designs whether surety bonds are necessary in their specific circumstances or location, as insurance requirements and other regulations can vary. It is also important to note that Boulder Designs has the right to modify insurance coverage requirements over time.