What is the deadline for a Craters & Freighters franchisee to furnish proof of insurance to the franchisor after issuance?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Original or duplicate copies of all insurance policies, certificates of insurance, or other proof of insurance acceptable to Franchisor, including original endorsements affecting the coverage required by this Section, must be furnished to Franchisor together with proof of payment within ten (10) days of issuance thereof. Franchisee must also furnish Franchisor with certificates and endorsements evidencing such insurance coverage within ten (10) days after each of the following events: (i) at all policy renewal periods, no less often than annually, and (ii) at all instances of any change to, addition to, or replacement of any insurance. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee must furnish proof of insurance to Craters & Freighters within ten days of the insurance policy's issuance. This proof can be in the form of original or duplicate copies of all insurance policies, certificates of insurance, or other proof acceptable to Craters & Freighters, including original endorsements affecting the required coverage, along with proof of payment.
In addition to providing proof of insurance upon initial issuance, a Craters & Freighters franchisee must also furnish certificates and endorsements evidencing such insurance coverage within ten days after each policy renewal period (at least annually) and at all instances of any change to, addition to, or replacement of any insurance. These certificates and endorsements must be signed by a person authorized by the insurer to bind coverage on its behalf and are subject to approval by Craters & Freighters.
Craters & Freighters retains the right to request complete, certified copies of all required insurance policies at any time. Failure to comply with these insurance requirements constitutes a material breach of the Franchise Agreement, potentially leading to termination or other default remedies. Craters & Freighters also has the option, but not the obligation, to purchase insurance on the franchisee's behalf if the franchisee fails to do so, with the franchisee responsible for reimbursing Craters & Freighters for the full cost plus a reasonable service charge within five days of receiving an invoice.