When must a Cilantro Taco Grill franchisee deliver the initial Certificate of Insurance to the franchisor?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.2 Evidence of Insurance.
Franchisee shall deliver to, and maintain at all times with Franchisor, current Certificates of Insurance evidencing the existence and continuation of the required coverages.
Franchisee shall deliver the initial Certificate of Insurance no later than ten (10) days before Franchisee opens the Franchised Business.
In addition, if requested by Franchisor, Franchisee shall deliver to Franchisor a copy of the insurance policy or policies required hereunder.
- 15.3 Failure to Procure.
If, for any reason, Franchisee should fail to procure or maintain the insurance required by this Agreement as revised from time to time for all franchisees by the Manual or otherwise in writing, Franchisor shall have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge Franchisee for the cost thereof together with an administrative fee of ten percent (10%) of the cost for Franchisor's expenses in so acting, including all attorneys' fees.
Franchisee shall pay Franchisor immediately upon notice by Franchisor to Franchisee that Franchisor has undertaken such action and the cost thereof.
- 15.4 Increase in Coverage.
The levels and types of insurance stated herein are minimum requirements.
Franchisor reserves the right to raise the required minimum requirements for any type of insurance or add additional types of insurance requirements as Franchisor deems reasonably prudent to require.
Within thirty (30) days of any such required new limits or types of coverage, Franchisee must submit proof to Franchisor of Franchisee's coverage pursuant to Franchisor's requirements.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, a new franchisee must provide the initial Certificate of Insurance to Cilantro Taco Grill no later than ten days before opening their franchised business.
This requirement ensures that the franchisee has secured the necessary insurance coverage to protect both their business and Cilantro Taco Grill from potential liabilities. Maintaining current Certificates of Insurance with the franchisor is an ongoing obligation.
Failure to provide or maintain the required insurance allows Cilantro Taco Grill to procure the insurance themselves and charge the franchisee for the cost, along with a 10% administrative fee. Additionally, Cilantro Taco Grill retains the right to increase the minimum insurance requirements or add new types of coverage, with franchisees required to submit proof of compliance within 30 days of such changes.