What are the consequences if a Casiola franchisee fails to maintain the required insurance policies?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event Franchisee fails, for any reason, to procure or maintain the insurance required by this Agreement, then Franchisor has the right and authority (but not the obligation) to immediately procure insurance and charge all costs, fees, and expenses associated with same to Franchisee, which such charges, together with a reasonable administrative fee for Franchisor's expenses in so acting, shall be immediately payable by Franchisee to Franchisor upon demand. The foregoing remedies are in addition to any other remedies Franchisor may have under this Agreement, at law, or in equity.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance, Casiola has the right, but not the obligation, to procure the insurance themselves. The franchisee is then responsible for immediately paying all costs, fees, and expenses associated with the insurance.
In addition to the insurance costs, Casiola will charge a reasonable administrative fee to cover their expenses for obtaining the insurance. This administrative fee, along with the insurance costs, is due immediately upon demand from Casiola.
The FDD specifies that these remedies available to Casiola are in addition to any other remedies they may have under the Franchise Agreement, at law, or in equity. This means that Casiola could pursue other legal or contractual options beyond simply procuring the insurance and charging the franchisee. It is important for prospective franchisees to understand the full scope of their insurance obligations and the potential ramifications of non-compliance.