For a Deck Medic franchise, what is the requirement for insuring my service vehicles?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Service Vehicles Your service vehicles must meet our standards and specifications, be designated and insured for commercial use, and be wrapped with our approved branding and vehicle wrap. You may only operate your Deck Medic Business from service vehicles that meet our standards and specifications.
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- Credit Card Processing You must use our designated supplier and vendor for credit card processing which may be integrated with the point of sale system that we designate. Credit card processing fees will, generally, be based on a percentage of all credit card processed Gross Sales.
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- Insurance You must obtain the insurance coverage that we require from time to time as presently disclosed in the Manuals and as we may modify. All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us, and all insurance (excluding workers' compensation) must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds. The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy. A certificate of insurance must be furnished by
you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program. Insurance coverage must be at least as comprehensive as the minimum requirements set forth in the chart below and in the Franchise Agreement (Franchise Agreement, Article 8).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, service vehicles must meet specific standards, be designated and insured for commercial use, and display approved branding with a vehicle wrap. Franchisees are required to obtain insurance coverage as specified in the manuals, which may be modified from time to time. All insurance policies must be written by a carrier acceptable to Deck Medic, and the franchisor, along with its officers, directors, and other related parties, must be named as additional insureds (excluding workers' compensation). The insurance carrier must provide Deck Medic with at least 30 days' prior written notice of any material alteration or cancellation of the policy. A certificate of insurance must be furnished to Deck Medic at the earlier of 90 days after the Franchise Agreement's effective date or before the start of initial training.
The required insurance includes business automobile insurance with a combined single bodily injury and property damage limit of at least $1,000,000 per occurrence, including liability coverage for hired and non-owned automobiles. Additionally, Deck Medic requires franchisees to maintain other insurance coverages, including property, general liability, workers' compensation, employer's liability, business interruption, commercial umbrella liability, and employment practices liability insurance. The specific limits for these other coverages are detailed in Item 8 of the FDD.
Prospective Deck Medic franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and the manuals to ensure they obtain adequate coverage. Consulting with an insurance representative is recommended to determine the necessary coverage levels for the franchised business, as higher exposures may require higher limits. Franchisees must adhere to Deck Medic's standards for service vehicles and insurance to maintain compliance with the franchise agreement.