When must a Crown Gold Exchange franchisee provide Certificates of Insurance to Crown Gold Franchising?

According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a franchisee must provide Certificates of Insurance to Crown Gold Franchising under three specific circumstances. First, the franchisee must provide these certificates before opening their Crown Gold Exchange business. This ensures that the business is properly insured from the outset. Second, the franchisee must provide updated certificates upon the annual renewal of their insurance coverage, demonstrating continuous compliance with the required insurance standards. Finally, Crown Gold Franchising can request these certificates at any time, allowing the franchisor to verify coverage as needed.

These requirements ensure that all Crown Gold Exchange locations maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. The specific types and amounts of insurance coverage are detailed in the Crown Gold Franchising Manual. If not specified in the manual, the franchisee must maintain minimum coverage levels, including "Special" causes of loss coverage, business interruption insurance, Commercial General Liability insurance ($1,000,000 single limit per occurrence and $2,000,000 aggregate limit), Jeweler's Insurance ($1,000,000), and Workers Compensation coverage as required by state law.

Furthermore, the insurance policies (excluding Workers Compensation) must list Crown Gold Franchising and its affiliates as additional insured parties. The policies must also include a waiver of subrogation in favor of Crown Gold Franchising and its affiliates, be primary and non-contributing with any insurance carried by Crown Gold Franchising, and stipulate that Crown Gold Franchising receives 30 days' prior written notice of cancellation. These stipulations protect Crown Gold Franchising's interests and ensure they are promptly informed of any changes to the franchisee's insurance coverage.

For a prospective franchisee, this means budgeting for comprehensive insurance coverage and maintaining meticulous records of insurance policies and renewals. It also requires establishing a system for promptly providing Certificates of Insurance to Crown Gold Franchising as required. Failure to comply with these insurance requirements could result in a breach of the franchise agreement and potential penalties.