Are the insurance requirements for Crown Gold Exchange detailed in the Brand Standards Manual?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (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. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notic
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the insurance requirements are detailed in the Brand Standards Manual. Franchisees must obtain insurance as described in the Franchise Agreement and the Brand Standards Manual. The required insurance includes: (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.
Crown Gold Exchange franchisees must ensure that their insurance policies (other than Workers Compensation) list Crown Gold Exchange and its affiliates as additional insureds. The policies must include a waiver of subrogation in favor of Crown Gold Exchange and its affiliates, be primary and non-contributing with any insurance carried by Crown Gold Exchange or its affiliates, and stipulate that Crown Gold Exchange receive 30 days' prior written notice of cancellation.
This requirement ensures that Crown Gold Exchange franchisees have adequate coverage to protect their business and assets, as well as to cover potential liabilities. It also protects Crown Gold Exchange by including them as an additional insured and requiring notification of any policy changes. Prospective franchisees should carefully review the insurance requirements in the Brand Standards Manual and Franchise Agreement to understand the full scope of coverage needed and the associated costs.