Which section of the Christian Brothers Automotive Franchise Agreement specifies insurance requirements?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
10.15 Insurance. To standardize insurance coverage and to afford Franchisee and Franchisor protection against insurable risks, Franchisor may prescribe minimum standards and limits for insurance coverage to be purchased by Franchisee. Such standards and limits may be set forth in the Confidential Operations Manual or by other written notice. Franchisee must promptly provide Franchisor with certificates of insurance evidencing such coverage and copies of the underlying policies, including all endorsements, no later than ten (10) days prior to the Opening Date, and Franchisee must again furnish Franchisor with those certificates and policies whenever any coverage is renewed and/or replaced. If Franchisee fails or refuses to purchase insurance conforming to the standards and limits prescribed by Franchisor, Franchisor may (but is not required to) obtain, through agents and insurance companies of its own choosing, such insurance as meets such standards. All costs for such insurance will be borne by Franchisee as provided in the Approved Expense Items and in the Confidential Operations Manual. Franchisee must reimburse Franchisor for all payments made by Franchisor in connection with obtaining such insurance. Franchisor is
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 37–39)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Section 10.15 of the Franchise Agreement outlines the insurance requirements for franchisees.
Christian Brothers Automotive has the right to set minimum standards and limits for the insurance coverage that franchisees must acquire. These standards and limits can be found in the Confidential Operations Manual or through other written notices provided by Christian Brothers Automotive. Franchisees are obligated to furnish certificates of insurance and copies of the underlying policies to Christian Brothers Automotive, including all endorsements, no later than ten days before the opening date. These documents must also be provided whenever any coverage is renewed or replaced.
If a franchisee fails to obtain insurance that meets the standards set by Christian Brothers Automotive, Christian Brothers Automotive has the option, but not the obligation, to acquire the necessary insurance through their own agents and insurance companies. The franchisee will bear all costs associated with this insurance, as detailed in the Approved Expense Items and the Confidential Operations Manual, and must reimburse Christian Brothers Automotive for any payments made to obtain such insurance. Christian Brothers Automotive is not required to obtain insurance for the franchisee.