What happens if CB Franchising requests a Certificate of Insurance from a Chocolate Bash franchisee?

According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees must provide Certificates of Insurance to CB Franchising under certain circumstances. Specifically, franchisees must provide these certificates before opening their business, upon annual renewal of their insurance coverage, and at any time upon CB Franchising's request.

This requirement ensures that Chocolate Bash franchisees maintain the necessary insurance coverage as mandated by the franchise agreement. The insurance policies, with the exception of Workers Compensation, must list CB Franchising and its affiliates as additional insured parties. These policies must also 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 will receive 30 days' prior written notice of cancellation.

For a prospective Chocolate Bash franchisee, this means being prepared to furnish proof of insurance coverage whenever requested by the franchisor. Failure to provide the required certificates could potentially lead to a breach of the franchise agreement, highlighting the importance of maintaining adequate and compliant insurance coverage throughout the franchise term.