Are there any exceptions to the insurance requirements for a Crown Gold Exchange franchise?
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 must adhere to specific insurance requirements as outlined in the Franchise Agreement and Brand Standards Manual. These requirements include maintaining "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, Jeweler's Insurance coverage of at least $1,000,000, and Workers Compensation coverage as mandated by state law.
The insurance policies, excluding Workers Compensation, must list Crown Gold Exchange and its affiliates as additional insured parties and include a waiver of subrogation in their favor. Additionally, these policies must be primary and non-contributing with any insurance held by Crown Gold Exchange or its affiliates. The insurance provider must also provide Crown Gold Exchange with 30 days' prior written notice of cancellation.
The FDD does not explicitly state any exceptions to these insurance requirements. Therefore, a prospective Crown Gold Exchange franchisee should assume that these insurance requirements are mandatory and non-negotiable unless otherwise clarified by the franchisor. It would be prudent for potential franchisees to discuss any possible flexibility or exceptions with Crown Gold Exchange directly during their due diligence process.