What section of the Card My Yard Franchise Agreement covers insurance requirements for franchisees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Insurance
Insurance to be Maintained by Franchisee
You must obtain and maintain insurance policies protecting you and us and various related parties against any demand or claim with respect to personal injury, death or property damage, or any loss, liability or expense related to or connected with the operation of the Card My Yard business. All required insurance policies must be purchased from an insurance company with an A.M. Best rating of A or better. We have approved an insurance program offered by The Hartford Financial Services Group, Inc., but you may, at your option, choose to obtain insurance from any provider with an A.M. Best rating of A or better. In addition, each of your insurance policies must include a one-year tail following the termination, expiration or transfer of your franchise agreement, and each policy must name us as a co-insured. At a minimum (except as additional coverages and higher policy limits may reasonably be specified by us from time to time in writing), you must carry:
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 33–34)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the insurance requirements for franchisees are detailed in an unnumbered section titled "Insurance" within Item 8 of the FDD. This section specifies that franchisees must secure and maintain insurance policies to protect themselves, Card My Yard, and related parties against claims of personal injury, death, property damage, loss, liability, or expenses linked to the operation of the Card My Yard business.
The FDD stipulates that all insurance policies must be purchased from an insurance company with an A.M. Best rating of A or better. While Card My Yard has approved an insurance program with The Hartford Financial Services Group, Inc., franchisees have the option to choose any provider that meets the A.M. Best rating requirement.
Furthermore, each insurance policy must include a one-year tail following the termination, expiration, or transfer of the franchise agreement and must name Card My Yard as a co-insured. The FDD indicates that Card My Yard may specify additional coverages and higher policy limits in writing from time to time. The minimum insurance requirements are not specified in this section of the FDD.