What are the basic insurance coverage requirements for a Brueggers Bagels franchise, as specified in the manuals?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
in a dignified manner, and must conform to our standards and requirements. You or the Marketing Co-op must submit written samples of all proposed advertising and promotional plans and materials to us for our approval at least thirty (30) days before their intended use, unless the plans and materials were prepared by us or have been approved by us within the last twelve (12) months. Proposed advertising plans or materials will be deemed to have been approved if we have not disapproved them within fifteen (15) days after receipt. All electronic marketing and electronic communications are subject to Sections 9.6 to 9.12 of this Agreement.
15. INSURANCE
- 15.1. Basic Requirements. You must, at your own expense, maintain the types and minimum amounts of insurance coverage specified in the Manuals. The policy, or policies, must be written by insurance companies with an industry rating acceptable to us; must name us, our affiliates, and their respective officers, directors, shareholders, and employees as additional insureds as specified by us; and must not have deductibles, exclusions or co-insurance requirements that are unacceptable to us. You must provide us with evidence of all required insurance coverage and payment of premiums before beginning construction of the Bakery. At least 30 days before each insurance policy expires, you must furnish a copy of the renewal or replacement insurance policy and evidence of payment of the premium. The policy must state that we will be notified by the insurance company if the policy is terminated, canceled or expires. Your obligation to obtain insurance coverage is not limited in any way by the insurance that we maintain.
- 15.2. Our Rights. We have the right to increase the amounts of coverage required and require different or additional kinds of insurance at any time, including excess liability insurance, to reflect inflation, new risks, changes in the law or standards of liability, higher damage awards or other relevant changes in circumstances. All public liability and property damage policies must contain a waiver by the insurance company of subrogation rights against us and our affiliates, successors and assigns. If you fail to maintain the insurance required by this Agreement, we have the right (but no obligation) to obtain insurance on your behalf. If we do so, you agree to reimburse us for the cost of insurance, plus a reasonable fee for our services.
16. SALE OR ASSIGNMENT
- 16.1. By Us. We have the right to transfer or assign this Agreement or any part of our rights or obligations under this Agreement to any person or legal entity.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees must adhere to specific insurance coverage requirements detailed in the franchise's manuals. These policies must be secured from insurance companies holding an industry rating acceptable to Brueggers Bagels. Furthermore, Brueggers Bagels, its affiliates, and their respective officers, directors, shareholders, and employees must be named as additional insureds. The policies should not include unacceptable deductibles, exclusions, or co-insurance requirements.
Before beginning construction of the bakery, franchisees must provide evidence of the required insurance coverage and proof of premium payments. At least 30 days before each policy's expiration, franchisees are obligated to furnish copies of renewal or replacement policies along with evidence of premium payment. The insurance policies must stipulate that the insurance company will notify Brueggers Bagels if the policy is terminated, canceled, or expires. The franchisee's obligation to maintain insurance coverage is not limited by any insurance that Brueggers Bagels may maintain.
Brueggers Bagels retains the right to increase coverage amounts or require different or additional types of insurance at any time, including excess liability insurance, to account for inflation, new risks, changes in the law or standards of liability, higher damage awards, or other relevant changes in circumstances. All public liability and property damage policies must include a waiver by the insurance company of subrogation rights against Brueggers Bagels and its affiliates, successors, and assigns. Should a franchisee fail to maintain the required insurance, Brueggers Bagels has the right, but not the obligation, to obtain insurance on the franchisee's behalf, with the franchisee agreeing to reimburse Brueggers Bagels for the cost of the insurance plus a reasonable service fee.
Additionally, franchisees must furnish a Certificate of Insurance to Brueggers Bagels 30 days before the bakery opens. This certificate must indicate that the franchisee has general liability insurance, including coverage for premises, operations, contractual, and products liability. The limits of this insurance must not be less than $5,000,000.00 per occurrence for bodily injury and $5,000,000.00 for property damage, or a combined single limit of $5,000,000.00 for both. The certificate must also indicate that Brueggers Bagels, its parents, subsidiaries, and affiliates are listed as additional insureds as a Vendor, and it must provide for a 30-day notice to Brueggers Bagels of any cancellation or material change in coverage.