When must a Cinch I.T. franchisee provide certificates of insurance evidencing their insurance coverage?

According to Cinch I.T.'s 2024 Franchise Disclosure Document, a franchisee must provide certificates of insurance evidencing their insurance coverage no later than 10 days before their Franchised Business opens. Additionally, franchisees must provide these certificates annually as prescribed in the Operations Manual.

Maintaining adequate insurance is a standard requirement in franchising, designed to protect both the franchisee and the franchisor from potential liabilities. The specific types and amounts of coverage Cinch I.T. requires are detailed in Item 8, including casualty, liability, and workers' compensation, with minimum coverage levels such as $1,000,000 per occurrence and $2,000,000 in the aggregate for general and professional liability.

The franchisor also has the right to obtain insurance on behalf of the franchisee if the franchisee fails to maintain the mandatory insurance coverage. However, the franchisee would be responsible for reimbursing Cinch I.T. for the cost of this insurance, which might be higher than what the franchisee could obtain independently. Furthermore, all insurance policies must name Cinch I.T. and any designated affiliates as additional insureds and provide at least 30 days' prior written notice of any termination, amendment, or cancellation.