Does Endless Summer Sweets require Workers Compensation coverage for its franchisees?
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 Workers Compensation coverage as mandated by state law. In addition to Workers Compensation, franchisees must also secure other types of insurance, including "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance with a $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, and Business Automobile Liability insurance of not less than $1,000,000.
The insurance policies, with the exception of Workers Compensation, must list Endless Summer Sweets and its affiliates as additional insured parties and include a waiver of subrogation in their favor. These policies must also be primary and non-contributing with any insurance held by Endless Summer Sweets or its affiliates. Furthermore, the insurance provider must give Endless Summer Sweets 30 days' prior written notice of any policy cancellation.
This requirement ensures that Endless Summer Sweets franchisees are protected against employee-related injuries or illnesses that may occur on the job. It also ensures that Endless Summer Sweets is protected from potential liability. Franchisees should consult with an insurance professional to determine the specific Workers Compensation requirements in their state and to obtain appropriate coverage.