When must a Chem-Dry franchisee submit a Certificate of Insurance?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
You must submit to us an acceptable Certificate of Insurance for the Business, any vehicles used in the business and the workers compensation coverage required in your state within 30 days after you and we sign the Franchise Agreement and then annually prior to the expiration of your insurance coverage showing renewal or replacement with coverage conforming to our insurance requirements and the proper additional insureds.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee must submit an acceptable Certificate of Insurance for the business, any vehicles used in the business, and the workers compensation coverage required in their state. This submission is required within 30 days after signing the Franchise Agreement.
The franchisee must also submit the Certificate of Insurance annually. This annual submission must be made prior to the expiration of the current insurance coverage. The certificate must show renewal or replacement with coverage conforming to Chem-Dry's insurance requirements and the proper additional insureds.
This requirement ensures that Chem-Dry franchisees maintain adequate insurance coverage to protect both their business and Chem-Dry from potential liabilities. Failing to provide the Certificate of Insurance within the specified timeframes could result in a breach of the Franchise Agreement.