Can Burros Fries reasonably specify the liability limits for business interruption insurance?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
t forth in the Franchise Agreement.
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- Business Interruption insurance in such amount as will reimburse you for direct or indirect loss of earnings attributed to all perils commonly insured against by prudent business owners (including lost royalties, system advertising and other fees due to us and/or our affiliates), or attributable to prevention of access to the Business, with coverage for a period of interruption of one hundred eighty (180) days and such longer period as we may specify periodically. Business interruption insurance is required with liability limits of amounts we may reasonably specify which will relate to the right to be reimbursed for direct or indirect loss of earnings attributed to all perils commonly insured against by prudent business owners.
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- Automobile liability coverage, including coverage of owned, non-owned and hired vehicles, with coverage in amounts not less than $100,000 combined single limit or what is in accordance with your
Burros & Fries
state guidelines;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are required to obtain business interruption insurance. Burros Fries can reasonably specify the liability limits for this insurance.
The business interruption insurance must reimburse the franchisee for direct or indirect loss of earnings attributed to all perils commonly insured against by prudent business owners. This includes lost royalties, system advertising, and other fees due to Burros Fries and/or its affiliates. It also covers losses attributable to prevention of access to the Business, with coverage for a period of interruption of 180 days, or such longer period as Burros Fries may specify periodically.
The liability limits for the business interruption insurance will be amounts Burros Fries may reasonably specify. These amounts will relate to the right to be reimbursed for direct or indirect loss of earnings attributed to all perils commonly insured against by prudent business owners. Franchisees must provide evidence of insurance to Burros Fries from a responsible carrier acceptable to them and maintain this coverage during the term of the Franchise Agreement.