Before conducting business, what must an Exit franchisee cause its insurance agency to deliver to Exit and the Subfranchisor?

According to Exit's 2025 Franchise Disclosure Document, before conducting business, a franchisee must ensure their insurance agency directly provides certificates of insurance to both Exit and the Subfranchisor. These certificates must confirm that the required insurance policies are active and in full effect. The insurance policies must also list the Subfranchisor and Exit as additional insured parties.

This requirement ensures that Exit and the Subfranchisor are protected by the franchisee's insurance coverage from the outset of the franchise operation. By requiring direct delivery of the certificates, Exit aims to verify independently that the franchisee has secured the necessary insurance coverage and that Exit and the Subfranchisor are properly named as additional insureds.

For a prospective Exit franchisee, this means coordinating with their insurance provider to ensure these certificates are promptly sent to Exit and the Subfranchisor before commencing business operations. Failure to provide these certificates could delay the start of operations or potentially result in a breach of the franchise agreement.