What happens if an Expense Reduction Analysts franchisee fails to obtain the required insurance?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE1 | AMOUNT OR FORMULA | DUE DATE | REMARKS |
|---|---|---|---|
| Insurance | Will vary according to circumstances | Upon demand | If you fail to obtain required insurance, we may obtain such insurance at your expense (but are not required to do so) and charge you a service fee to do so. Otherwise, these payments are made directly to your third-party insurance provider. You must name us and any Approved Supplier we designate |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, if a franchisee fails to obtain the required insurance, Expense Reduction Analysts has the option, but not the obligation, to obtain the insurance on behalf of the franchisee.
If Expense Reduction Analysts chooses to obtain the insurance, the franchisee is responsible for covering the expense of the insurance policy. In addition to the cost of the insurance itself, Expense Reduction Analysts will charge the franchisee a service fee for procuring the insurance.
Furthermore, the franchisee is required to name Expense Reduction Analysts and any Approved Supplier they designate as an additional insured on the policy. This protects Expense Reduction Analysts from potential liabilities arising from the franchisee's operations. It is important for prospective franchisees to understand the insurance requirements and ensure they maintain adequate coverage to avoid these potential costs and ensure compliance with the franchise agreement.