How often must a Chatime franchisee provide the franchisor with copies of insurance certificates?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) Franchisee must provide Franchisor at least annually and on request by Franchisor a copy of the certificates of insurance or other evidence requested by Franchisor that the Insurance Policy exists, is current, and is on terms and conditions approved by Franchisor. The maintenance of the Insurance Policy is the responsibility of Franchisee. Franchisor may, but will have no obligation to, prescribe types or amounts of insurance coverage and will have no obligation to indemnify Franchisee if it does not do so or if the types or amounts of insurance coverage prescribed by Franchisor are insufficient to fully cover a claim made against Franchisee.
(5) Franchisee must promptly and in accordance with the terms of the relevant Insurance Policy, report to both the insurer and Franchisor, any claim or event which may give rise to a claim against Franchisee, Franchisor, or any of their Affiliates.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee must provide the franchisor with copies of insurance certificates or other requested evidence at least annually. Additionally, Chatime can request these documents at any time. This evidence must show that the insurance policy exists, is current, and adheres to the terms and conditions approved by Chatime.
It is the franchisee's responsibility to maintain the insurance policy. Chatime has the option, but not the obligation, to specify the types or amounts of insurance coverage required. Chatime is not obligated to indemnify the franchisee if it does not specify these amounts or if the specified coverage is insufficient to cover a claim against the franchisee.
Furthermore, the Chatime franchisee is required to promptly report any claim or event that could lead to a claim against the franchisee, Chatime, or their affiliates to both the insurer and Chatime, adhering to the terms of the relevant insurance policy. This ensures that all parties are informed of potential liabilities and can take appropriate action.
This requirement ensures that Chatime franchisees maintain adequate insurance coverage to protect both their business and the Chatime brand from potential liabilities. Franchisees should ensure they understand the insurance requirements and maintain accurate records of their policies and any claims.