What evidence of insurance coverage and premium payment must a Brueggers Bagels franchisee provide before beginning construction of the Bakery?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a franchisee must provide evidence of all required insurance coverage and payment of premiums before beginning construction of the Bakery. The insurance policy must be written by insurance companies with an industry rating acceptable to Brueggers Bagels. The policy must name Brueggers Bagels, its affiliates, and their respective officers, directors, shareholders, and employees as additional insureds as specified by Brueggers Bagels. The policy must not have deductibles, exclusions, or co-insurance requirements that are unacceptable to Brueggers Bagels.
At least 30 days before each insurance policy expires, the franchisee must furnish a copy of the renewal or replacement insurance policy and evidence of payment of the premium. The policy must state that Brueggers Bagels will be notified by the insurance company if the policy is terminated, canceled, or expires.
Brueggers Bagels retains 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 Brueggers Bagels and its affiliates, successors, and assigns. If the franchisee fails to maintain the insurance required by the agreement, Brueggers Bagels has the right (but no obligation) to obtain insurance on the franchisee's behalf, and the franchisee agrees to reimburse Brueggers Bagels for the cost of insurance, plus a reasonable fee for their services.