When must a Buns On Fire franchisee deliver certificates of insurance to the franchisor?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the opening of the Franchised Business, Franchisee will deliver to Franchisor certificates of the Insurance, together with the copies of the actual policies issued, and will promptly pay all premiums thereon as and when the same become due. All policies shall provide that they are non-cancelable as to Franchisor in the absence of thirty (30) days' written notice to Franchisor. Franchisor shall have the right, but shall not be obligated, to pay premiums due and unpaid by Franchisee or else to obtain substitute coverage in the case of cancellation. Any cost thereof to Franchisor shall be added to the Royalty Fees otherwise payable to Franchisor under this Agreement, provided, however, that same shall be due and payable to Franchisor by the Franchisee within five (5) days of demand therefor.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee must provide certificates of insurance to Buns On Fire before opening their franchised business. These certificates serve as proof that the franchisee has obtained the necessary insurance coverage as stipulated by the franchise agreement. Additionally, the franchisee must also provide copies of the actual insurance policies.
Furthermore, the Buns On Fire franchisee is responsible for promptly paying all insurance premiums as they become due. The insurance policies must be non-cancelable with respect to Buns On Fire without providing a 30-day written notice to the company. This requirement ensures that Buns On Fire is protected from potential liabilities and disruptions to the business.
Buns On Fire retains the right, but not the obligation, to pay any unpaid premiums or secure substitute insurance coverage if the franchisee fails to do so. If Buns On Fire incurs such costs, these expenses will be added to the franchisee's royalty fees. The franchisee is then required to reimburse Buns On Fire within five days of demand. This provision ensures that the required insurance coverage remains in effect, safeguarding the interests of both the franchisee and Buns On Fire.