How much prior written notice must be provided to Checkersrallys for any material modification, cancellation, or expiration of an insurance policy?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must: (1) be issued by carriers we approve with an A.M. Best Rating of not less than A VII; (2) contain such types and minimum amounts of coverage,
exclusions and maximum deductibles as we prescribe from time to time; (3) name us and our affiliates as additional insured; (4) provide for 30 days' prior written notice to us of any material modification, cancellation or expiration of such policy; (5) provide a waiver of subrogation in favor of us and our affiliates; and (6) include such other provisions as we may require.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys franchisees must ensure that their insurance policies provide Checkersrallys with 30 days' prior written notice of any material modification, cancellation, or expiration. This requirement is in place to allow Checkersrallys to confirm that franchisees maintain continuous and adequate insurance coverage as mandated by the franchise agreement.
This stipulation ensures that Checkersrallys is promptly informed of any changes to a franchisee's insurance policy, allowing them sufficient time to verify that the franchisee obtains replacement coverage if necessary. This protects both the franchisee and Checkersrallys from potential liabilities and financial losses that could arise from operating without adequate insurance.
The requirement for prior notice is a common practice in franchising, as franchisors typically need to ensure that franchisees meet specific insurance requirements to protect the brand and the entire franchise system. Franchisees should maintain open communication with their insurance providers to ensure compliance with this requirement and promptly address any potential issues related to their insurance coverage.