What is the minimum coverage amount required for Employment Practices Liability Insurance for a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
project's hard cost value | | Boiler and Machinery/Equipment Breakdown | Covering not less than 100% of the replacement | | Insurance | costs of those items | | Type of Coverage | Amount | |------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Crime Insurance | $250,000 for employee dishonesty, $50,000 each for forgery and alteration, money and securities (inside), money and securities (outside), robbery and safe burglary of property (other than money and securities), computer fraud, counterfeit paper currency | | Terrorism Insuran
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 40–45)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are required to maintain Employment Practices Liability Insurance with a minimum coverage of $1,000,000. This insurance is designed to protect the franchisee from claims made by employees regarding various employment-related issues.
In addition to Employment Practices Liability Insurance, Camp Margaritaville requires franchisees to carry several other types of insurance coverage, including Comprehensive General Liability Insurance with limits of $5,000,000 per occurrence and $5,000,000 annual aggregate, and Cyber Liability Insurance of $3,500,000. The specific amounts and types of coverage may be subject to change, and franchisees must ensure they meet the minimum standards set by Camp Margaritaville.
Camp Margaritaville also mandates that franchisees purchase insurance from companies meeting specific criteria, including being qualified to do business in the relevant jurisdiction and having a Best rating of at least A. Furthermore, Camp Margaritaville and other designated parties must be named as additional insureds on all policies, and franchisees must provide evidence of their insurance coverage to the franchisor. These requirements ensure that both the franchisee and Camp Margaritaville are adequately protected against potential liabilities and risks associated with the operation of the franchise.