Who is responsible for the expense of purchasing and maintaining insurance policies during the term of the Casiola franchise agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee, at Franchisee's sole expense, must purchase and maintain in full force at all times during the Term of this Agreement an insurance policy or policies protecting Franchisee as named insured and naming, as additional insureds, Franchisor, Franchisor's affiliates, Franchisor's successors and assigns, and the officers, directors, shareholders, partners, agents, representatives, independent contractors and employees of Franchisor. The policy or policies must be written by a carrier or carriers with an A.M. Best Rating of at least A-, VII and reasonably acceptable to Franchisor. From time to time Franchisor may designate preferred insurance brokers and insurance carriers.
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 the 2024 Casiola Franchise Disclosure Document, the franchisee is solely responsible for the expense of purchasing and maintaining insurance policies throughout the term of the franchise 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 required insurance policies must be written by carriers with an A.M. Best Rating of at least A-, VII, or another rating reasonably acceptable to Casiola. The specific types of insurance, coverage requirements, and amounts are detailed in the Casiola Operations Manual. Casiola retains the right to modify the required coverage amounts and types of insurance periodically, but cannot increase the minimum coverage more than once every two years. These changes can be made to reflect inflation, new risks, changes in law, or other relevant circumstances.
All public liability and property damage policies must include a provision that allows Casiola to recover under the policies for any losses caused by the negligence of the franchisee or their personnel. Franchisees must provide certificates of insurance demonstrating compliance with these requirements no later than 90 days after the effective date or before the commencement of the Training Program, whichever is earlier. Additionally, all insurance policies must provide Casiola with at least 30 days' prior written notice in the event of any material alteration or cancellation of the policy.