What evidence of insurance must a Devon Creek franchisee provide to the franchisor?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.2 Evidence of Insurance.
Franchisee shall deliver to, and maintain at all times with Franchisor, current Certificates of Insurance evidencing the existence and continuation of the required coverages.
In addition, if requested by Franchisor, Franchisee shall deliver to Franchisor a copy of the insurance policy or policies required hereunder.
- 15.3 Failure to Procure.
If, for any reason, Franchisee should fail to procure or maintain the insurance required by this Agreement as revised from time to time for all franchisees by
the Manual or otherwise in writing, Franchisor shall have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge Franchisee for the cost thereof together with an administrative fee of ten percent (10%) for Franchisor's expenses in so acting, including all attorneys' fees. Franchisee shall pay Franchisor immediately upon notice by Franchisor to Franchisee that Franchisor has undertaken such action and the cost thereof.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees must provide evidence of insurance to the franchisor. Specifically, franchisees must deliver and maintain current Certificates of Insurance with Devon Creek, evidencing the required insurance coverages are in place.
In addition to the certificates, Devon Creek can request a copy of the insurance policy or policies from the franchisee. This allows Devon Creek to verify the specifics of the coverage and ensure it meets their requirements.
If a franchisee fails to secure or maintain the required insurance, Devon Creek has the right, but not the obligation, to procure the insurance themselves. The franchisee will then be charged for the cost of the insurance, along with an administrative fee of ten percent (10%) to cover Devon Creek's expenses, including attorney's fees. The franchisee is required to pay Devon Creek immediately upon notification of this action and the associated costs.