What is the deadline for a Dickeys Barbecue Pit franchisee to provide certificates of insurance after executing the lease?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
f you are at any time required to furnish any lender, lessor, government agency or other person audited financial statements with respect to the franchised business, you shall concurrently furnish Dickey's a copy of such audited financial statements.
- 13.6 DISCLOSURE OF DATA. You hereby authorize Dickey's to disclose data from your reports, if Dickey's determines, in its sole discretion, that such disclosure is necessary or advisable, which disclosure may include disclosure to prospective or existing franchisees, financial institutions, investment bankers or other third parties.
ARTICLE 14. INSURANCE
14.1 MAINTENANCE OF INSURANCE & APPROVED INSURANCE AGENT. You shall obtain, within thirty (30) days after the execution of the Lease, and shall maintain in full force and effect at all times during the term of this Agreement, at your expense, all of the insurance policies in Article 14.2 ("Coverages") (except for liquor liability insurance if you do not sell alcoholic beverages at your Restaurant). You shall obtain all Coverages solely from insurance agents/brokers or other provider approved by Dickey's (which Dickey's may limit to an exclusive source, including a Dickey's affiliate or subsidiary). Dickey's may or may not receive compensation or other economic benefits from these approved insurance agents/brokers or other providers. If you desire to purchase the required Coverages from an unapproved insurance agent/broker or provider, you shall submit to Dickey's a written request for such approval prior to procuring the Coverages.
Source: Item 22 — CONTRACTS (FDD pages 95–96)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, franchisees must obtain and maintain insurance policies throughout the term of the agreement. Specifically, a Dickeys Barbecue Pit franchisee is required to obtain the necessary insurance coverage within thirty (30) days after the execution of the lease for their restaurant location. This insurance must remain in full effect for the duration of the Franchise Agreement.
This requirement ensures that both the franchisee and Dickeys Barbecue Pit are protected against potential liabilities and risks associated with operating the restaurant. The franchisee must secure all required coverages from insurance agents or brokers approved by Dickeys Barbecue Pit, which may include exclusive sources or even Dickeys Barbecue Pit affiliates. Dickeys Barbecue Pit may receive compensation from these approved providers.
If a franchisee wishes to use an unapproved insurance provider, they must seek written approval from Dickeys Barbecue Pit before procuring coverage. If Dickeys Barbecue Pit grants approval, the franchisee must pay a $350 fee for the review of the proposed coverage. Should Dickeys Barbecue Pit determine that the coverage is insufficient, the franchisee has seven business days to procure the necessary additional coverage and pay an additional $150 review fee, with further fees of $150 for any subsequent changes needed.