What specific insurance requirements apply to a Cilantro Taco Grill franchisee during construction, renovation, refurbishment, or remodeling of the Restaurant?

According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, a franchisee is required to maintain specific insurance coverage during any construction, renovation, refurbishment, or remodeling of their restaurant. Specifically, the franchisee must have builder's risk insurance and performance and completion bonds. These policies must be in forms and amounts, and written by duly licensed carrier or carriers, reasonably satisfactory to Cilantro Taco Grill.

Builder's risk insurance typically covers property damage or loss during construction, while performance and completion bonds ensure that the construction project is completed according to the agreed-upon terms.

It is important for prospective franchisees to understand these insurance requirements and factor the costs into their budget when planning any construction, renovation, or remodeling work. Franchisees should clarify with Cilantro Taco Grill what specific forms and amounts of coverage are considered satisfactory to ensure compliance with the franchise agreement.