What aspects of the insurance policies can the Bumper Man franchisor inspect?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Proof of Insurance. At least two weeks prior to the Commencement Date, thereafter, at least 30 days prior to the expiration of any such policy, Franchisee will deliver to Franchisor evidence of such insurance in the form of certificates evidencing such coverage as well as endorsements reflecting the requirements of this Section 13 and all language wherever found in the policies that related to the determination of who is an additional insured, and the scope of the additional insured's coverage. Franchisor has the right, but not the obligation to inspect any actual policies required under this Agreement for compliance with all specified coverage, terms, conditions, endorsements, and limits relative to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, Bumper Man has the right, but not the obligation, to inspect the franchisee's insurance policies. This inspection is for ensuring compliance with all specified coverage, terms, conditions, endorsements, and limits relative to the Franchise Agreement.
To demonstrate proof of insurance, at least two weeks before the Commencement Date and 30 days before the expiration of any policy, the franchisee must provide Bumper Man with certificates evidencing coverage. These certificates must include endorsements reflecting the requirements outlined in Section 13 of the agreement. The franchisee must also provide any policy language that determines who is an additional insured and the scope of their coverage.
This clause allows Bumper Man to verify that franchisees maintain adequate insurance coverage, protecting both the franchisee and Bumper Man from potential liabilities. It is the franchisee's responsibility to secure sufficient insurance and to understand that the franchisor-mandated minimums do not guarantee comprehensive protection for all circumstances.