What is the relationship between the Brueggers Bagels's approved premises (Item 12) and the franchisee's obligation to maintain insurance coverage (Item 9)?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Certificates of Insurance.** Licensee shall furnish to Licensor, 30 (thirty) days before the Bakery opens, a Certificate of Insurance which:
(a) Indicates that Licensee has general liability insurance, including coverage for premises, operations, contractual, and products liability;
(b) Provides limits of not 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 bodily injury and property damage;
(c) Indicates that Licensor, its parents, subsidiaries, and affiliates are listed as additional insured(s) as a Vendor; and
(d) Provides for a 30-day notice to Licensor of any cancellation or material change in coverage.
(l) Licensor shall not require Licensee to purchase any Approved Supplies, Trade Secret Food Products (as defined below) or other products or paper packaging bearing the Marks from any vendor unless such vendor has represented in writing to Licensor that it has obtained from an insurance carrier acceptable to Licensor and Licensee, and at all times maintains, commercial and general liability insurance, including premises, operations, products and contractual liability, with a combined single limit of not less than $2,000,000.00 (Two Million U.S.
Dollars and No Cents) per occurrence for personal injury and property damage.
Upon execution of this Agreement, and annually thereafter, Licensor shall cause such vendors to provide Licensee with a Certificate of Insurance evidencing the coverages herein required.
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the approved premises for a Brueggers Bagels bakery directly impacts the franchisee's insurance obligations. The franchisee is required to obtain and maintain general liability insurance that includes coverage for the premises. This means the insurance policy must specifically cover liabilities arising from the operation of the Brueggers Bagels business at the approved location.
The insurance certificate must indicate that the franchisee has general liability insurance, including coverage for premises, operations, contractual, and products liability. The policy must have limits of not 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 bodily injury and property damage. Brueggers Bagels, its parents, subsidiaries, and affiliates must be listed as additional insured(s) as a Vendor, and Brueggers Bagels must receive a 30-day notice of any cancellation or material change in coverage.
Furthermore, Brueggers Bagels requires its approved suppliers to maintain commercial and general liability insurance, including premises, operations, products and contractual liability, with a combined single limit of not less than $2,000,000.00 per occurrence for personal injury and property damage. The franchisee should ensure that all vendors have provided Brueggers Bagels with a Certificate of Insurance evidencing the coverages required. This interconnectedness highlights how the physical location and its associated operations are central to managing risk and ensuring adequate protection for both the franchisee and Brueggers Bagels.