Where are the currently required insurance policies, coverage requirements, and coverage amounts for a Casiola franchise designated?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
The currently required insurance policies, insurance coverage requirements, and insurance coverage amounts are designated and set forth in the Operations Manual. Franchisor may, in Franchisor's Reasonable Business Judgment, periodically change the amounts of coverage required under such insurance policies and require different or additional kinds of insurance at any time, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. Notwithstanding the immediately foregoing sentence, Franchisor shall not increase such minimum coverage more than once every two years. All public liability and property damages policies must contain a provision that Franchisor is entitled to recover under these policies on any loss occasioned to Franchisor, Franchisor's affiliates, Franchisor's successors and assigns, and the officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, and employees of Franchisor by reason of the negligence of Franchisee and/or Franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, and employees. By the earlier of 90 days after the Effective Date or prior to the commencement of the Training Program, Franchisee must deliver, or cause to be delivered, to Franchisor a copy of the certificates of insurance demonstrating Franchisee's compliance with this Article 8. All insurance policies required must expressly provide that no less than 30 days' prior written notice shall be given to Franchisor in the event of a material alteration to, or cancellation of, any insurance policy Franchisee is required to maintain in accordance with this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the specific details regarding required insurance policies, coverage requirements, and coverage amounts are outlined in the Operations Manual. Casiola franchisees are obligated to maintain insurance policies throughout the term of their agreement. These policies must protect the franchisee as the named insured and also name Casiola, its affiliates, successors, assigns, officers, directors, shareholders, partners, agents, representatives, independent contractors, and employees as additional insureds.
The insurance carrier must have an A.M. Best Rating of at least A-, VII, or be otherwise reasonably acceptable to Casiola. Casiola has the discretion to designate preferred insurance brokers and carriers. The franchisor may periodically adjust the required coverage amounts and types of insurance, including potentially requiring excess liability insurance, to account for factors like inflation, new risks, changes in laws, or increased liability standards. However, Casiola can only increase the minimum coverage requirements once every two years.
Casiola requires that all public liability and property damage policies include a provision allowing Casiola to recover losses resulting from the negligence of the franchisee or their personnel. Franchisees must provide Casiola with certificates of insurance demonstrating compliance with these requirements by the earlier of 90 days after the agreement's effective date or before starting the training program. Additionally, insurance policies must provide Casiola with at least 30 days' written notice in case of any material alteration or cancellation of the policy.