What kind of insurance coverage does Endless Summer Sweets require franchisees to obtain?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
the Franchise Agreement).
- 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, franchisees are required to obtain several types of insurance coverage. These include "Special" causes of loss coverage, which covers fire, extended coverage, crime, vandalism, and malicious mischief, on all business property for its full repair and replacement value, subject to a reasonable deductible. Additionally, franchisees must secure business interruption insurance that covers at least 12 months of income.
Endless Summer Sweets franchisees also need to carry Commercial General Liability insurance, including products liability coverage and broad form commercial liability coverage, with a minimum of $1,000,000 single limit per occurrence and a $2,000,000 aggregate limit. Furthermore, they must have Business Automobile Liability insurance covering owned, leased, non-owned, and hired automobiles with a limit of not less than $1,000,000. Finally, franchisees are required to obtain Workers Compensation coverage as mandated by state law.
The insurance policies, with the exception of Workers Compensation, must list Endless Summer Sweets and its affiliates as additional insured parties. These policies must also include a waiver of subrogation in favor of Endless Summer Sweets and its affiliates, be primary and non-contributing with any insurance carried by the franchisor or its affiliates, and stipulate that Endless Summer Sweets receives 30 days' prior written notice of any policy cancellation. This ensures that Endless Summer Sweets is protected from potential liabilities and is informed of any changes to the franchisee's insurance coverage.