Are the insurance requirements for Crown Gold Exchange detailed in the Franchise Agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
cific Obligations
The following are our current specific obligations for purchases and leases:
- A. Real Estate. Your business location is subject to our approval and must meet our specifications. You must use reasonable efforts to have your landlord sign our form of Rider to Lease Agreement (attached to this disclosure document as Exhibit D).
- 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.
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 described in the Franchise Agreement and the Brand Standards Manual. Franchisees must obtain specific insurance coverages, including "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance (not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit), Jeweler's Insurance coverage (not less than $1,000,000), and Workers Compensation coverage as required by state law.
The insurance policies, except for Workers Compensation, must list Crown Gold Exchange and its affiliates as additional insureds and include a waiver of subrogation in their favor. These policies must also be primary and non-contributing with any insurance carried by Crown Gold Exchange or its affiliates. Furthermore, the policies must stipulate that Crown Gold Exchange receives 30 days' prior written notice of cancellation.
This level of detail is typical for franchise agreements, as franchisors need to protect their brand and ensure franchisees have adequate coverage. Prospective franchisees should carefully review these insurance requirements to understand the costs and obligations involved in operating a Crown Gold Exchange franchise. They should also confirm with insurance providers that they can meet these specific requirements.