When must a Bumper Man franchisee provide proof of insurance to the franchisor before the Commencement Date?
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 Bumper Man's 2025 Franchise Disclosure Document, a franchisee must provide proof of insurance to Bumper Man at least two weeks prior to the Commencement Date. This proof must be in the form of certificates evidencing coverage and endorsements that reflect the requirements outlined in Section 13 of the franchise agreement. These endorsements should detail who is considered an additional insured and the extent of their coverage.
In addition to providing initial proof of insurance, the franchisee must also provide updated proof at least 30 days before the expiration of any existing policy. This ensures that Bumper Man remains informed about the franchisee's insurance coverage and that there are no gaps in coverage. Bumper Man retains the right, but not the obligation, to inspect the actual insurance policies to ensure compliance with the agreement's specified coverage, terms, conditions, endorsements, and limits.
The insurance policies must meet the minimum requirements outlined in Exhibit E of the Franchise Agreement, and these requirements may be amended by Bumper Man from time to time. The franchisee also acknowledges that the required coverages are minimums and is free to buy additional insurance or increase coverage amounts as deemed necessary. The franchisee is responsible for determining the appropriate level of insurance coverage and releases Bumper Man from any claims related to the procurement of insurance, including claims that Bumper Man did not require adequate insurance.