What A.M. Best rating must the insurance carrier have for a Buff City Soap Makery?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
mplished through an escrow);
- B. instruments transferring all approvals, licenses and/or permits of the Makery which may be assigned or transferred, with appropriate consents, if required;
- C. instruments transferring fee simple or leasehold interest in the Premises and improvements thereon, subject to any necessary approvals from third-party landlords or financial institutions or banks; and
- D. general releases, in form satisfactory to Franchisor, from Franchisee and its Principals, of any and all claims against Franchisor, its Affiliates, and its officers, directors, employees, agents, successors and assigns.
EXHIBIT I
INSURANCE REQUIREMENTS
The insurance requirements described below are for a single Makery. If Franchisee owns multiple Makeries, Franchisee must meet the insurance requirements below for each Makery and "per Makery location" aggregate limits when multiple Makeries are insured under single comprehensive general liability policy (capitalized terms not defined in this Exhibit I have the meanings set forth in the Agreement). All insurance policies must:
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- be issued by a responsible carrier or carriers that has received and maintains an A.M. Best rating of at least A-VI (or comparable ratings from a reputable insurance rating service, in the event such A.M. Best ratings are discontinued or materially altered), and otherwise approved by Franchisor;
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- contain a waiver of subrogation provision;
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- other than Workers' Compensation, name Buff City Soap Franchising, LLC as an additional insured on a primary basis for operations of BCS Makery. If the additional insured has other insurance applicable to a loss, it will be on an excess or contingent basis. The additiona
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the insurance carrier for a single Makery must have an A.M. Best rating of at least A-VI. Alternatively, the carrier can have a comparable rating from a reputable insurance rating service if A.M. Best ratings are discontinued or materially altered. The insurance carrier is also subject to approval by Buff City Soap.
This requirement ensures that the franchisee obtains insurance from a financially stable and reputable provider, which can provide assurance that claims will be paid. It also protects Buff City Soap from potential liabilities.
In addition to the A.M. Best rating, the insurance policies must include a waiver of subrogation provision and name Buff City Soap Franchising, LLC as an additional insured on a primary basis (except for Workers' Compensation). The policies must also provide 30 days' prior written notice to Buff City Soap of any material modification, cancellation, or expiration.
Furthermore, any deductible, self-insured retention, or self-funded retention must have prior written consent from Buff City Soap and cannot exceed $25,000 if consent is given. The coinsurance percentage will not be less than 80%.