What information must be included on the certificate of insurance provided to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Within six (6) months after the signing of this Agreement, but in no event later than the date on which Franchisee acquires an interest in the real property on which Franchisee will develop and operate the Franchised Business, Franchisee must furnish CITY WIDE for approval a certificate of insurance showing compliance with the foregoing requirements. Such certificate will state that such policy or policies will not be canceled or altered without at least thirty (30) days prior written notice to CITY WIDE and will reflect proof of payment of premiums. Franchisee will also submit copies of such insurance policies. Maintenance of such insurance and the performance by Franchisee of the obligations under this Section 17.3 will not relieve Franchisee of liability under the indemnity provision set forth in this Agreement. Minimum coverage limits may be published in the Operating Manual and may be modified from time to time, as conditions require, by written notice from CITY WIDE to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, within six months of signing the franchise agreement, but no later than acquiring interest in the property where the business will operate, a franchisee must provide City Wide with a certificate of insurance for approval. This certificate must confirm compliance with City Wide's insurance requirements.
The certificate of insurance must state that the insurance policies will not be canceled or altered without at least thirty days prior written notice to City Wide. Additionally, the certificate must include proof of payment of premiums, demonstrating that the franchisee has kept the required insurance coverage current. Franchisees are also required to submit copies of the actual insurance policies to City Wide.
Maintaining the required insurance is a continuous obligation, and the franchisee's compliance with insurance requirements does not relieve them of liability under the indemnity provisions outlined in the franchise agreement. The specific minimum coverage limits are detailed in City Wide's Operating Manual and may be adjusted periodically through written notice from City Wide to the franchisee.