What performance rating must the insurance carrier have 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 the 2024 Burros Fries Franchise Disclosure Document, franchisees must secure insurance coverage from a carrier with a performance rating of A or higher. This rating is based on the most recent edition of Best Insurance Reports, or comparable criteria as specified by Burros Fries. This requirement must be met before opening a Burros Fries franchise and maintained throughout the duration of the franchise agreement, including any renewal terms.
In addition to the performance rating, Burros Fries requires franchisees to list them as an additional insured on all insurance policies. Franchisees must also 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 to cover damages resulting from injuries caused by the products distributed by the franchisee.
Furthermore, franchisees are required to have property and casualty insurance with a minimum policy limit of $2,000,000 or an amount specified by Burros Fries. They must also obtain "All Risks" or "Special Form" insurance to cover the full replacement cost of the premises and all other property. Other insurance requirements include 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. These comprehensive insurance requirements are typical in franchising to protect both the franchisee and franchisor from potential liabilities and losses.