What is the deadline for providing Christian Brothers Automotive with certificates of insurance and underlying policies?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly provide us with certificates of insurance evidencing such coverage and copies of the underlying policies, including all endorsements, no later than the day after major equipment or lifts are delivered as policies must be in place by that date, and you must again furnish us with those certificates and policies whenever any coverage is renewed and/or replaced. All costs for such insurance will be borne by you. All insurance purchased by you must name CBAC (and where requested, its lenders and/or landlords) as an additional insured, and mortgagee/loss payee if required, on a primary and non-contributory basis, and must provide that CBAC will be given at least thirty (30) days' prior written notice of any termination, amendment, cancellation, or modification thereof.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees must provide certificates of insurance and copies of the underlying policies to Christian Brothers Automotive by the day after major equipment or lifts are delivered. The FDD stipulates that policies must be in place by that date. Franchisees must also furnish these certificates and policies whenever any coverage is renewed or replaced.
This requirement ensures that both the franchisee and Christian Brothers Automotive are protected against potential insurable risks from the outset of operations. By mandating that insurance is in place before major equipment is used, Christian Brothers Automotive aims to mitigate any liability arising from accidents or damages involving the equipment.
The franchisee bears all costs associated with obtaining and maintaining the required insurance coverage. Furthermore, all insurance policies must name Christian Brothers Automotive (and its lenders or landlords, if requested) as an additional insured and mortgagee/loss payee on a primary and non-contributory basis. The insurance policies must also provide Christian Brothers Automotive with at least thirty (30) days' prior written notice of any termination, amendment, cancellation, or modification. This ensures that Christian Brothers Automotive is promptly informed of any changes to the franchisee's insurance coverage, allowing them to take appropriate action to protect their interests.