When must a Cool Binz franchisee provide proof of insurance to the franchisor?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
At least ten (10) days before attending Training, commencing the operation of the COOL BINZ Business, whenever a change is made to your policy, and before expiration of any insurance coverage, you must have your insurance provider send us a copy or certificate or other acceptable proof of such insurance.
All general liability insurance policies will name us, BELFOR Franchise Group, LLC, BELFOR USA Group Inc., and our designated affiliates, employees, officers and directors (the "Indemnified Parties") as additional insureds, and will contain no provision which in any way limits or reduces coverage for you if a claim is made by any one or more of the Indemnified Parties, and will extend to and provide indemnity for all obligations assumed by you and all items for which you are required to indemnify us, will be primary to and without right of contribution from any other insurance purchased by the Indemnified Parties, and will provide, by endorsement, that we receive at least 30 days' notice of any intent to cancel or materially alter any policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–34)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee must provide proof of insurance to Cool Binz at several specific times. These instances include at least ten days before attending training, before commencing operation of the Cool Binz business, whenever a change is made to the insurance policy, and before the expiration of any insurance coverage. This proof can be in the form of a copy, certificate, or other acceptable documentation from the insurance provider.
This requirement ensures that Cool Binz franchisees maintain continuous and adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. By requiring proof of insurance before training, operation, policy changes, and expirations, Cool Binz aims to minimize gaps in coverage and ensure that all franchisees meet the minimum insurance standards. The franchisor also needs to be named as an additional insured on the general liability insurance policies.
The insurance policies must name BELFOR Franchise Group, LLC, BELFOR USA Group Inc., and their designated affiliates, employees, officers, and directors as additional insureds. The policies should not limit or reduce coverage if a claim is made by any of the Indemnified Parties. They must also extend to and provide indemnity for all obligations assumed by the franchisee and all items for which the franchisee is required to indemnify Cool Binz. The insurance must be primary and without right of contribution from any other insurance purchased by the Indemnified Parties, and provide at least 30 days' notice of any intent to cancel or materially alter any policy.
For a prospective Cool Binz franchisee, this means being proactive in managing insurance coverage and documentation. It is crucial to establish a system for tracking policy changes and expiration dates to ensure timely submission of proof of insurance to Cool Binz. Failing to provide timely proof of insurance could potentially lead to a breach of the franchise agreement and possible penalties or termination.