When must a Craters & Freighters franchisee furnish certificates and endorsements evidencing insurance coverage to the franchisor?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
g 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
bind coverage on its behalf.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, a franchisee must furnish certificates and endorsements evidencing insurance coverage to Craters & Freighters within ten days after certain events. These events include at all policy renewal periods, no less often than annually, and at all instances of any change to, addition to, or replacement of any insurance.
This requirement ensures that Craters & Freighters remains informed about the franchisee's insurance coverage and can verify that the coverage meets the standards outlined in the Operations Manuals. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf, and are subject to approval by Craters & Freighters.
Craters & Freighters also reserves the right to request complete, certified copies of all required insurance policies at any time. Failure to obtain and maintain the required insurance, or to provide proof of insurance, constitutes a material breach of the agreement, potentially leading to termination of the franchise agreement. Craters & Freighters has the option 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.