Where can a Crown Gold Exchange franchisee find the specific insurance policy requirements?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
res, including any national or regional brand conventions. Franchisee shall not permit the Principal Executive to fail to attend more than three consecutive required meetings.
7.15 Insurance.
- (a) Franchisee shall obtain and maintain insurance policies in the types and amounts as specified by Crown Gold Franchising in the Manual. If not specified in the Manual, Franchisee shall maintain at least the following insurance coverage:
- (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible);
- (ii) Business interruption insurance covering at least 12 months of income;
- (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit;
- (iv) Jeweler's Insurance coverage in an amount of not less than $1,000,000; and
- (v) Workers Compensation coverage as required by state law.
- (b) Franchisee's policies (other than Workers Compensation) must (1) list Crown Gold Franchising and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Crown Gold Franchising and its affiliates, (3) be primary and non-contributing with any insurance carried by Crown Gold Franchising or its affiliates, and (4) stipulate that Crown Gold Franchising shall receive 30 days' prior written notice of cancellation.
- (c) Franchisee shall provide Certificates of
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the specific types and amounts of insurance policies that a franchisee must obtain and maintain are detailed in the Manual. If the specifics are not listed in the Manual, the franchisee must maintain certain minimum insurance coverages. These include "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, Jeweler's Insurance coverage of not less than $1,000,000, and Workers Compensation coverage as required by state law.
Crown Gold Exchange requires that all insurance policies (except Workers Compensation) list Crown Gold Franchising and its affiliates as additional insureds and include a waiver of subrogation in their favor. The policies must also be primary and non-contributing with any insurance carried by Crown Gold Franchising or its affiliates. Furthermore, Crown Gold Franchising must receive 30 days' prior written notice of cancellation for these policies.
Before opening their Crown Gold Exchange business and upon annual renewal of their insurance coverage, franchisees must provide Certificates of Insurance to Crown Gold Franchising as evidence of the required coverage. These certificates must also be provided at any time upon Crown Gold Franchising's request. This ensures that franchisees maintain the necessary insurance and that Crown Gold Exchange is protected against potential liabilities.