When must a Chocolate Bash franchisee provide Certificates of Insurance to CB Franchising?

According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee must provide Certificates of Insurance to CB Franchising in three specific instances. First, the franchisee must provide these certificates prior to opening their Chocolate Bash business. Second, they must provide them upon the annual renewal of their insurance coverage. Finally, a franchisee must furnish the Certificates of Insurance at any time upon the request of CB Franchising.

This requirement ensures that Chocolate Bash franchisees maintain the necessary insurance coverage to protect both their business and the Chocolate Bash brand. By requiring certificates before opening, Chocolate Bash verifies that the franchisee has secured adequate protection from the outset. The annual renewal requirement ensures continuous coverage, and the on-demand provision allows Chocolate Bash to confirm coverage is in place at any given time.

The specific types and amounts of insurance coverage required are detailed in the Chocolate Bash Manual. If not specified in the manual, the franchisee must maintain minimum coverage including: "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, and Workers Compensation coverage as required by state law.

Furthermore, the franchisee's insurance policies (excluding Workers Compensation) must list CB Franchising and its affiliates as additional insured parties, include a waiver of subrogation in favor of CB Franchising and its affiliates, be primary and non-contributing with any insurance carried by CB Franchising or its affiliates, and stipulate that CB Franchising shall receive 30 days' prior written notice of cancellation. These stipulations protect Chocolate Bash from potential liabilities and ensure they are promptly informed of any changes to the franchisee's insurance coverage.