What are the three requirements for all insurance policies procured and maintained by the Boulder Designs franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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, all insurance policies that a franchisee obtains and maintains must meet three specific requirements. First, the insurance policies must name Boulder Designs as an additional insured. This protects Boulder Designs from potential liabilities arising from the franchisee's operations.
Second, the policies must include a waiver of any right to assert a claim against Boulder Designs. This provision prevents the insurance company from seeking compensation from Boulder Designs for any claims paid out to the franchisee or third parties.
Third, the insurance provider must commit to notify Boulder Designs 30 days before any cancellation or significant modification to the policy. This advance notice allows Boulder Designs to ensure continuous coverage and address any potential gaps in insurance. Additionally, the franchisee must provide Boulder Designs with certificates of coverage annually to verify compliance with these insurance requirements.