Within how many days of receiving insurance certificates must an Ella Cafe franchisee provide certificates of insurance to the franchisor?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
ess and account for communicating with Franchisor, per Franchisor's specifications. To the extent Franchisor provides franchisee emails, then Franchisee shall use the assigned email for all business purposes and shall respond to all emails within one business day.
7.18 Insurance.
(a) Types and Amounts of Coverage
At its sole expense, Franchisee shall procure within sixty days of the Effective Date, and maintain in full force and effect during the term of this Agreement, insurance as required by state law and as we specify below. All policies (except any workers' compensation insurance) shall expressly name Franchisor as an additional insured, grantor of franchise and loss payee and all shall contain a waiver of all subrogation rights against Franchisor and its successors and assigns. In addition to any other insurance that may be required by applicable law, or by lender or lessor, Franchisee shall procure:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Ella Cafe does not specify a particular timeframe within which a franchisee must provide certificates of insurance to the franchisor after receiving them. However, the FDD does state that the franchisee must procure the required insurance coverage within sixty days of the Effective Date. Additionally, failure to obtain or maintain required insurance coverage is grounds for termination of the franchise agreement with only a 10-day cure period.
This implies that while there isn't a set number of days to submit the certificates after receiving them, franchisees must act promptly to ensure Ella Cafe receives proof of coverage. The franchisee needs to maintain the required insurance coverage during the term of the agreement.
Prospective Ella Cafe franchisees should clarify with the franchisor the expected timeframe for submitting insurance certificates to ensure compliance and avoid potential issues or termination of the agreement. It would be prudent to ask Ella Cafe about their specific requirements for submitting insurance certificates and any associated deadlines or procedures.