Can the amounts of insurance required for a Christian Brothers Automotive franchise be increased by the Lessor?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Tenant must obtain such increased insurance coverage (type and/or amount) as promptly as is reasonably possible.
Where a provision in this section requires insurance coverage to be in the full replacement cost of the insured property, the full replacement cost shall be an amount sufficient in Lessor's determination to completely cover the replacement cost of such insured property.
- e.
Tenant must deliver to Lessor copies of the insurance policies, any endorsements required by Lessor or Owner, and certificates of such insurance certifying that the same is in full force and effect.
Tenant hereby releases Lessor and Owner to the extent of Tenant's insurance coverage, from any and all liability for any loss or damage caused by fire or any of the extended coverage casualties, even if such fire or other casualty are brought about by the fault or negligence of Lessor or Owner, its servants or agents, provided, however, this release will be in force and effect only with respect to loss or damage occurring during such time as Tenant's policies of fire and extended coverage contain (or would contain, if Tenant had made a reasonable effort to obtain same) a clause to the effect that this release will not affect policies or the right of Tenant to recover thereunder.
Tenant agrees that its fire and extended coverage insurance policies will include such a clause so long as the same is obtainable without extra cost, or if extra cost is chargeable therefore, so long as Lessor
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the insurance coverage (type and/or amount) can be increased by the Lessor. The franchisee must obtain such increased insurance coverage as promptly as is reasonably possible.
The full replacement cost of the insured property will be an amount sufficient in the Lessor's determination to completely cover the replacement cost of such insured property. The franchisee is required to deliver copies of the insurance policies, any endorsements required by the Lessor or Owner, and certificates of such insurance certifying that the same is in full force and effect.
The franchisee releases the Lessor and Owner to the extent of the franchisee's insurance coverage from any liability for loss or damage caused by fire or any extended coverage casualties, even if caused by the Lessor or Owner's fault or negligence. This release is effective only if the franchisee's policies contain a clause stating that the release will not affect the policies or the franchisee's right to recover under them. The franchisee agrees to include such a clause in their fire and extended coverage insurance policies, provided it is obtainable without extra cost, or if extra cost is chargeable, so long as the Lessor.