Does Chocolate Bash require Workers Compensation coverage?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
as Exhibit D).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and noncontributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees are required to obtain Workers Compensation coverage as mandated by state law. This requirement is part of the broader insurance obligations outlined in the Franchise Agreement and the Chocolate Bash Manual. Franchisees must adhere to these insurance requirements to operate their Chocolate Bash franchise.
In addition to Workers Compensation, Chocolate Bash requires franchisees to maintain other insurance policies, including (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit.
Chocolate Bash also mandates that all insurance policies (excluding Workers Compensation) list Chocolate Bash and its affiliates as additional insured parties. These policies must include a waiver of subrogation in favor of Chocolate Bash and its affiliates, be primary and noncontributing with any insurance carried by Chocolate Bash or its affiliates, and stipulate that Chocolate Bash receive 30 days' prior written notice of cancellation. This ensures that Chocolate Bash is protected and informed about any changes to the franchisee's insurance coverage.