What must a Creative World School franchisee furnish before the expiration of each insurance policy term?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
19.04 Evidence of Coverage. Before the expiration of the term of each insurance policy, you must furnish us with a copy of each new, renewal or replacement policy you have obtained to extend your coverage, along with evidence of the premium payment. If you do not maintain the required insurance coverage, or do not furnish us with satisfactory evidence of insurance coverage and premium payments, we may obtain, at our option and in addition to our other rights and remedies under this Agreement, any required insurance coverage on your behalf. If we do so, you must fully cooperate with us in our effort to obtain the insurance policies and must promptly sign all forms required to obtain or maintain the insurance. You must also allow any inspections of your School required to obtain or maintain the insurance. Finally, you must pay us, on demand, any costs and premiums we incur in obtaining insurance on your behalf. Neither your obligation to maintain insurance coverage nor our maintenance of insurance on your behalf, will reduce or absolve you of any obligations of indemnification described in this Agreement. Our recommendation or requirement of any insurance coverage is not an endorsement by us of the appropriateness of insurance coverage for your business and you should investigate with your insurance agent whether additional or increased coverage is appropriate for your business.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, before the expiration of each insurance policy term, a franchisee must provide the franchisor with a copy of each new, renewal, or replacement policy obtained to extend coverage. The franchisee must also furnish evidence of the premium payment.
If a Creative World School franchisee fails to maintain the required insurance coverage or does not provide satisfactory evidence of coverage and premium payments, the franchisor has the option to obtain the necessary insurance on the franchisee's behalf. In such cases, the franchisee is obligated to fully cooperate with Creative World School in securing the insurance policies, including signing all required forms and allowing inspections of the school.
Furthermore, the franchisee is responsible for paying Creative World School, upon demand, for all costs and premiums incurred in obtaining insurance on their behalf. It is important to note that the franchisee's obligation to maintain insurance coverage, or the franchisor's maintenance of insurance on the franchisee's behalf, does not reduce or absolve the franchisee of any indemnification obligations outlined in the Franchise Agreement. Creative World School's recommendation or requirement of any insurance coverage does not constitute an endorsement of the appropriateness of such coverage for the franchisee's business, and franchisees are advised to consult with their insurance agent to determine if additional or increased coverage is necessary.