What is the minimum policy limit for property and casualty insurance for a Burros Fries franchise?
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 secure property and casualty insurance with a minimum policy limit of $2,000,000, or an amount specified by Burros Fries. This insurance coverage is a requirement that must be maintained throughout the initial term of the Franchise Agreement and any renewal terms. Franchisees are also required to list Burros Fries as an additional insured on all insurance policies.
In addition to property and casualty insurance, Burros Fries franchisees must also obtain and maintain "All Risks" or "Special Form" insurance to cover the full cost of replacement of the premises and all other property. They must also carry employer liability insurance, automobile liability insurance with minimum coverage of $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.
Burros Fries reserves the right to change or modify the required minimum coverage limits, including increasing them. The document explicitly states that Burros Fries makes no representation that the required insurance amount is adequate to fully protect the franchisee's interests. Franchisees are encouraged to seek advice from their insurance advisor regarding appropriate coverage types and limits to adequately protect their business. Franchisees must provide Burros Fries with certified copies of all insurance policies by the earlier of the business opening or 180 days after the Franchise Agreement is executed.