What is the minimum amount of Jeweler's Insurance coverage required for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
nt 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. 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, franchisees must maintain Jeweler's Insurance coverage with a minimum coverage amount of $1,000,000. This insurance is in addition to other required coverage types.
Crown Gold Exchange requires this level of insurance to protect against potential losses or damages to jewelry and precious metals held at the franchise location. This coverage is a significant expense that franchisees must factor into their operating costs. The policy must list Crown Gold Exchange and its affiliates as additional insured parties and include a waiver of subrogation, meaning the insurance company cannot pursue Crown Gold Exchange for claims they pay out.
Additionally, Crown Gold Exchange must receive 30 days' written notice before any cancellation of the policy. This allows Crown Gold Exchange time to ensure the franchisee obtains replacement coverage to remain compliant with the franchise agreement. Franchisees should obtain detailed quotes for all required insurance coverage to accurately assess the financial implications of operating a Crown Gold Exchange franchise.