Is a Burros Fries franchisee required to maintain insurance coverage throughout the duration of the initial term of the Franchise Agreement and any renewal terms?
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
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees must maintain specific insurance coverage throughout the initial term of the Franchise Agreement and any renewal terms. Before opening a Burros Fries franchised business, franchisees must secure insurance coverage from a reputable carrier with a performance rating of A or higher, according to Best Insurance Reports. Franchisees are also required to list Burros Fries as an additional insured party on all insurance policies.
The required insurance includes general liability coverage with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 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.
Furthermore, franchisees must obtain and maintain "All Risks" or "Special Form" insurance for the full replacement cost of the premises and all other property, employer liability insurance, automobile liability insurance with minimum coverage of $100,000 combined single limit for bodily and property damage (or in accordance with 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 provide certificates of insurance and complete copies of all insurance policies within ten days of issuance and maintain all required insurance during the term of the agreement. Lapses, alterations, or cancellations require immediate notice to Burros Fries and may be deemed a material breach of the agreement. Burros Fries may change these insurance requirements with reasonable notice.