What insurance-related documents is a Burros Fries franchisee required to furnish to the franchisor?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
tion in favor of all those parties.
All insurance coverage shall be taken out in your name and shall name us and our affiliates as an additional insured and be placed with insurers designated by us or acceptable by us. You must furnish us with certified copies of each of the insurance policies described above on the earlier of your opening of the Business or one hundred eighty (180) days following the date that the Franchise Agreement is executed. You must purchase "A" rating insurance policies. Each such policy shall provide that it cannot be canceled without thirty (30) days' prior written notice to us and that we shall receive at least thirty (30) days' prior written notice of its expiration. You shall promptly refer all claims or potential claims against you or us to each of us and our insurer.
The cost of insurance purchased in accordance with our specifications will represent less than two percent (2%) of your total purchases in connection with the establishment of your Business and will be approximately one percent (1%) of your total purchases in the operation of your Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees must furnish certified copies of all required insurance policies to Burros Fries. These copies must be provided by the earlier of the franchisee's business opening or 180 days after the Franchise Agreement is executed. The insurance policies must have an "A" rating.
Burros Fries also requires that all insurance policies include a provision that the policy cannot be canceled without thirty days prior written notice to them and that they receive at least thirty days prior written notice of its expiration. Franchisees are also obligated to promptly refer all claims or potential claims against them or Burros Fries to both Burros Fries and their insurer.
In addition to providing copies of the insurance policies, franchisees are required to furnish copies of all insurance policies required by the Franchise Agreement and by the lease, to Burros Fries, or such other evidence of insurance coverage and payment of premiums as Burros Fries requests or permits or under the lease.