factual

Are there limits on the deductibles for Clean Your Dirty Face insurance policies?

Clean_Your_Dirty_Face Franchise · 2025 FDD

Answer from 2025 FDD Document

During the term of this Agreement you must maintain in force at your sole expense comprehensive public liability, general liability, personal injury liability, motor vehicle liability, property, product liability, workmen's compensation, employment practices liability, commercial liability umbrella, business interruption insurance, and other types of insurance we require. We reserve the right to require that you obtain all or a portion of your insurance policies from a designated vendor and on the terms and according to the specifications we approve. The liability insurance must cover claims for bodily and personal injury, death, and property damage caused by or occurring in connection with your Business's operation or activities of your personnel in the course of their employment (within and outside your Business and the Premises). All of these policies must contain the minimum coverage we prescribe from time to time, and must have deductibles not to exceed the amounts we specify. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverages (including reasonable excess liability insurance) at any time. These insurance policies must be purchased from licensed insurers having a rating of "A-/VIII" or higher by the then-current edition of Best Insurance Reports published by A.M. Best Company (or other similar publication or criteria we designate).

Each insurance policy for liability coverage must name us and any affiliates we designate as additional named insureds and provide for thirty (30) days' prior written notice to us of a policy's material modification, cancellation or expiration. Each insurance policy must contain a waiver of all subrogation rights against us, our affiliates and their successors and assigns. You must routinely furnish us copies of your Certificates of Insurance or other evidence of your maintaining this insurance coverage and paying premiums. If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies including termination, we may (but are not required to) obtain such insurance for you and your Business on your behalf, in which event you agree to cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a reasonable fee for our time incurred in obtaining such insurance.

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, franchisees must maintain various insurance policies during the term of their Franchise Agreement. These policies include comprehensive public liability, general liability, personal injury liability, motor vehicle liability, property, product liability, workmen's compensation, employment practices liability, commercial liability umbrella, business interruption insurance, and other types of insurance that Clean Your Dirty Face requires.

The Franchise Agreement specifies that all insurance policies must contain the minimum coverage amounts that Clean Your Dirty Face prescribes and must have deductibles not exceeding the amounts they specify. Clean Your Dirty Face retains the right to periodically increase the required coverage amounts or require different or additional insurance coverages, including reasonable excess liability insurance.

This means that as a Clean Your Dirty Face franchisee, you are subject to Clean Your Dirty Face's control over the types and amounts of insurance you must carry, as well as the maximum deductible amounts you can have on those policies. Failing to maintain the specified insurance can lead to Clean Your Dirty Face obtaining the insurance on your behalf and charging you for the premiums, costs, expenses, and a reasonable fee for their time, in addition to other remedies, including termination of the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.