When must a Desi District franchisee provide Certificates of Insurance evidencing the required coverage to Desi District Franchise Group?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
(c) Franchisee shall provide Certificates of Insurance evidencing the required coverage to Desi District Franchise Group prior to opening and upon annual renewal of the insurance coverage, as well as at any time upon request of Desi District Franchise Group.
7.16 Payments to Third Parties. Franchisee shall pay all vendors and suppliers in a timely manner.
Franchisee shall pay all taxes when due.
If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due.
If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
- 7.17 Public Relations. Franchisee shall not make any public statements (including giving interviews or issuing press releases) regarding Desi District, the Business, or any particular incident or occurrence related to the Business, without Desi District Franchise Group's prior written approval, which will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, a franchisee must provide Certificates of Insurance to Desi District Franchise Group under the following circumstances: prior to opening their Desi District location, upon the annual renewal of their insurance coverage, and at any time upon request from Desi District Franchise Group.
This requirement ensures that the franchisee maintains the necessary insurance coverage as specified by Desi District. By providing certificates of insurance, the franchisee proves they have obtained and are maintaining the required policies. This protects both the franchisee and Desi District from potential liabilities and financial losses.
The franchisee's policies (excluding Workers Compensation) must also (1) list Desi District Franchise Group and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Desi District Franchise Group and its affiliates, (3) be primary and non-contributing with any insurance carried by Desi District Franchise Group or its affiliates, and (4) stipulate that Desi District Franchise Group shall receive 30 days' prior written notice of cancellation. These stipulations further protect Desi District by ensuring they are covered under the franchisee's insurance policies and receive timely notification of any changes or cancellations.
It is the franchisee's responsibility to ensure that they obtain and maintain the required insurance coverage and provide the necessary documentation to Desi District in a timely manner. Failure to do so could result in a breach of the franchise agreement and potential penalties.