Where can the insurance requirements for an Endless Summer Sweets franchise be found?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
reement).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–16)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the insurance requirements are detailed within the Franchise Agreement and the Manual. Specifically, the FDD outlines the types and amounts of coverage a franchisee must secure. These include:
- "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible)
- Business interruption insurance covering at least 12 months of income
- Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit
- Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000
- Workers Compensation coverage as required by state law.
The FDD also stipulates that Endless Summer Sweets and its affiliates must be listed as additional insured parties on the franchisee's policies (excluding Workers Compensation). Additionally, the policies must include a waiver of subrogation in favor of Endless Summer Sweets and its affiliates, be primary and non-contributing with any insurance carried by them, and provide for 30 days' prior written notice of cancellation to the franchisor.
Prospective franchisees should carefully review both the Franchise Agreement and the Manual to fully understand the insurance obligations and ensure compliance to avoid potential breaches of contract. It is common practice in franchising for franchisors to mandate specific insurance coverage to protect their brand and the entire franchise system from liability.