Is a Burros Fries franchisee required to keep the Business fully insured?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
proval requests; andadminister the System Advertising Fund.
13. OBLIGATIONS OF FRANCHISEE RELATING TO INSURANCE
A. Overall Coverage Required
Before Franchisee opens a Burros & Fries Franchised Business, Franchisee must purchase insurance coverage from a responsible carrier with a performance rating of A or higher as rated in the most recent edition of Best Insurance Reports (or comparable criteria as we may specify) and Franchisee must maintain such insurance throughout the duration of the initial term of the Franchise Agreement and any renewal terms. Franchisee shall list us as additional insured on all its insurance policies. Franchisee will procure and maintain general liability insurance with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 aggregate (this policy should include general tort, premises damage, personal advertising injury and product liability insurance which covers Franchisee for damages that result in injury from products Franchisee distributes). Plus, property and casualty insurance with a minimum policy limit of $2,000,000 or an amount specified by the us.
Franchisee must also procure and maintain "All Risks" or "Special Form" insurance (coverage for the full cost of replacement of the premises and all other property); employer liability insurance, automobile liability insurance with coverage of owned and hired vehicles with minimum coverage in amounts not less than $100,000 combined single limit for bodily and property damage (or what is in accordance with Franchisee's state guidelines); business interruption insurance to fully insure loss of earnings for a period of one-hundred and eighty (180) days or longer as may specify; and statutory workers' compensation insurance with limits of greater than $100,000 or the minimum limits required by law.
For any construction, renovation, refurbishment or remodeling of the site, Franchisee must require that the general contractor maintain, with an approved insurer, commercial general liability insurance (with comprehensive automobile liability coverage for both owned and non-owned vehicles, builders risk, product liability and independent contractor's coverage) with limits of no less than $1,000,000 per claim, naming Franchisee and us as additional insureds, as their interests may appear, together with workers' compensation and employer's liability insurance as required by law and as required by the lease.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are required to purchase and maintain specific insurance coverage throughout the term of the Franchise Agreement and any renewals. This insurance must be obtained from a carrier with a performance rating of A or higher, according to Best Insurance Reports, or comparable criteria specified by Burros Fries. Franchisees must list Burros Fries as an additional insured on all policies.
The required insurance includes general liability coverage with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 in aggregate, covering general tort, premises damage, personal advertising injury, and product liability. Additionally, franchisees need property and casualty insurance with a minimum policy limit of $2,000,000 or as specified by Burros Fries, along with "All Risks" or "Special Form" insurance to cover the full replacement cost of the premises and other property.
Further insurance requirements include employer liability insurance, automobile liability insurance with minimum coverage of $100,000 combined single limit for bodily and property damage (or as per state guidelines), business interruption insurance to cover loss of earnings for at least 180 days, and statutory workers' compensation insurance with limits greater than $100,000 or the minimum required by law. Franchisees must also acquire tenant's liability insurance (if applicable) and any other insurance required by state or local laws. Franchisees must provide Burros Fries with certified copies of all insurance policies before opening the Business or within 180 days of signing the Franchise Agreement. Burros Fries reserves the right to modify the required minimum coverage limits.