Does Crown Gold Exchange require Workers Compensation coverage?
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, franchisees are required to obtain Workers Compensation coverage. The specific requirements for this coverage are determined by state law. This means that the franchisee must comply with the Workers Compensation laws of the state in which their Crown Gold Exchange business operates.
In addition to Workers Compensation, Crown Gold Exchange requires franchisees to maintain several other types of insurance. These include "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance with a $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, and Jeweler's Insurance coverage in an amount of not less than $1,000,000.
Crown Gold Exchange also mandates that all insurance policies, with the exception of Workers Compensation, list Crown Gold Exchange and its affiliates as additional insured parties. These 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 them, and stipulate that Crown Gold Exchange receives 30 days' prior written notice of cancellation. Franchisees should consult with an insurance professional to ensure they obtain the correct coverage and meet all requirements set by Crown Gold Exchange and their state.