Is a Bumper Man franchisee allowed to increase the amounts of insurance coverage beyond the minimum requirements?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee Acknowledgment as to Minimum Insurance Requirements. Franchisee acknowledges and agrees that the coverages required by Franchisor are the minimum amounts of coverage that Franchisee must procure under this Agreement. Franchisee is free to buy additional insurance coverage or increase the amounts of coverage as Franchisee deems appropriate based on Franchisee's investigation as to whether additional coverages or higher amounts are necessary. Franchisee further acknowledges and agrees that Franchisee is not relying upon Franchisor to determine the amount or type of insurance coverage necessary for Franchisee. FRANCHISEE RELEASES FRANCHISOR FROM ANY AND ALL CLAIMS RELATING TO THE PROCUREMENT OF INSURANCE INCLUDING CLAIMS THAT FRANCHISOR DID NOT REQUIRE FRANCHISEE TO PROCURE ADEQUATE INSURANCE.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, franchisees are permitted to buy additional insurance coverage or increase their coverage amounts beyond the minimums required by the franchisor. The FDD specifies that the insurance coverages Bumper Man requires are the minimum a franchisee must secure under the Franchise Agreement.
This allowance gives franchisees the flexibility to tailor their insurance to their specific risk profile and local market conditions. Bumper Man acknowledges that franchisees should conduct their own investigation to determine if additional coverages or higher amounts are necessary for their business.
Bumper Man franchisees also acknowledge that they are not relying on Bumper Man to determine the necessary amount or type of insurance coverage. Furthermore, franchisees release Bumper Man from any claims relating to the procurement of insurance, including claims that Bumper Man did not require the franchisee to procure adequate insurance. This highlights the importance of franchisees independently assessing their insurance needs and not solely relying on the franchisor's minimum requirements.