What evidence of insurance is a Crawlspace Medic franchisee required to provide to the Franchisor?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.2.
Evidence of Insurance.
Franchisee shall deliver to, and maintain at all times with Franchisor, current Certificates of Insurance evidencing the existence and continuation of the required coverage.
In addition, if requested by Franchisor, Franchisee shall deliver to Franchisor a copy of the insurance policy or policies required hereunder.
- 15.3.
Failure to Procure.
If, for any reason, Franchisee should fail to procure or maintain the insurance required by this Agreement as revised from time to time for all franchisees by the Manual or otherwise in writing, Franchisor shall have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge Franchisee for the cost thereof together with a reasonable fee for Franchisor's expenses in so acting, including all attorneys' fees.
Franchisee shall pay Franchisor immediately upon notice by Franchisor to Franchisee that Franchisor has undertaken such action and the cost thereof.
- 15.4.Increase in Coverage**.** The levels and types of insurance stated herein are minimum requirements.
Franchisor reserves the right to raise the required minimum requirements for any type of insurance or add additional types of insurance requirements, as Franchisor deems reasonably prudent to require.
Within thirty (30) days of any such required new limits or types of coverage, Franchisee must submit proof to Franchisor of Franchisee's coverage pursuant to Franchisor's requirements.
- 15.5.Additional Insured.
All required insurance policies shall name Franchisor and their affiliates and their members, officers, agents and employees as additional insureds as their interests may appear.
All public liability policies shall contain a provision that the additional insureds, although named as insureds,
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, franchisees must provide current Certificates of Insurance to the Franchisor as evidence of the required insurance coverage. If requested by Crawlspace Medic, the franchisee must also provide a copy of the insurance policies.
If a franchisee fails to maintain the required insurance, Crawlspace Medic has the right, but not the obligation, to procure the insurance and charge the franchisee for the cost, including a reasonable fee for expenses and attorney's fees. The franchisee is required to pay Crawlspace Medic immediately upon notice of such action and the associated costs.
The levels and types of insurance specified are minimum requirements, and Crawlspace Medic reserves the right to increase the minimum requirements or add additional types of insurance. Franchisees must submit proof of coverage meeting these new requirements within thirty days of notification. All required insurance policies must name Crawlspace Medic and its affiliates, members, officers, agents, and employees as additional insureds. Public liability policies must include a provision allowing the additional insureds to recover under the policies for any loss caused by the franchisee or their staff, even though they are named as insureds.