Under what conditions can Boulder Designs procure insurance coverage on behalf of the franchisee?

According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance policies, naming Boulder Designs as an additional insured. These policies include 'all risk' property insurance, commercial general liability insurance of at least $1,000,000 per occurrence with a $2,000,000 general aggregate, comprehensive general liability insurance of at least $30,000 per occurrence with a $30,000 general aggregate, workers' compensation insurance, vehicle replacement insurance (typically around $30,000), and automobile liability coverage of at least $1,000 combined single limit. Franchisees must provide Boulder Designs with certificates of coverage annually.

If a Boulder Designs franchisee fails to provide the required insurance certificates, Boulder Designs has the right, but not the obligation, to purchase the necessary insurance on behalf of the franchisee. This is in addition to any other legal remedies Boulder Designs may pursue.

In the event that Boulder Designs chooses to procure insurance for the franchisee, the franchisee is then obligated to immediately reimburse Boulder Designs for all expenses and premiums paid to obtain the insurance. This provision ensures that Boulder Designs can maintain adequate risk protection for the entire franchise system, while holding individual franchisees accountable for meeting their insurance obligations.