What AM Best's Rating is required for the insurance carrier used by Cool Binz franchisees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Each specified policy of insurance must meet the following requirements: (a) the policy must name us, BELFOR USA Group, Inc., and BELFOR Franchise Group, LLC (and any of our affiliates that we reasonably specify) as an additional insured; (b) the policy must not be subject to cancellation, modification or amendment except after 30 days written notice to us; (c) the insurance must be placed with an approved vendor and an insurance carrier with an AM Best's Rating of not less than A; and (d) the policy must provide that failure by you to comply with any term, condition or provision of the insurance contract, or other conduct by you, will not void or otherwise affect the coverage afforded us.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 27–31)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must secure insurance policies from approved vendors with a minimum AM Best's Rating of A. This requirement ensures that the insurance carrier has a strong financial standing and the ability to cover potential claims.
Cool Binz, Belfor USA Group, Inc., and Belfor Franchise Group, LLC (and any of their affiliates that they reasonably specify) must be named as additional insured on the policy. The policy must also stipulate that it cannot be canceled, modified, or amended without providing 30 days' written notice to Cool Binz.
Furthermore, the insurance policy must state that any failure by the franchisee to comply with the terms of the insurance contract or any other conduct by the franchisee will not void or otherwise affect the coverage afforded to Cool Binz. This protects Cool Binz from liabilities arising from the franchisee's actions or omissions. The initial investment table in Item 7 estimates insurance deposits and premiums to range from $10,200 to $17,850, payable before opening to the insurance company.