Who must approve the insurance company providing coverage for an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
The insurance company must be authorized to do business in the state where your Extreme Art Studio Business is located and must be approved by us. The liability insurance must cover claims for bodily and personal injury, death, and property damage caused by or occurring in connection with your Extreme Art Studio Business's operation or activities of your personnel in the course of their employment. We reserve the right to require that you obtain all or a portion of your insurance policies from a designated vendor. We or applicable law may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverages (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Each insurance policy must name us and any affiliates we designate as additional named insureds and provide for 30 days' prior written notice to us before the cancellation, expiration or material change of the policy. Each insurance policy must contain a waiver of all subrogation rights against us, our affiliates, and their successors and assigns. Prior to commencing any renovations or construction at the Extreme Art Studio Business, you will provide us with a certificate of insurance for the builder's risk insurance required. You must furnish us copies of your certificates of insurance or other evidence of your maintaining this insurance coverage and paying premiums at least 30 days prior to opening, and as we may routinely request. You must immediately notify us in writing of any accidents, injury, occurrence or claim that might give rise to a liability or claim against us or which could materially affect your Extreme Art Studio Business, and such notice must be provided no later than the date you notify your insurance carrier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, any insurance company providing coverage for an Extreme Art Studio franchise must be approved by the franchisor. Additionally, the insurance company must be authorized to conduct business in the state where the Extreme Art Studio is located.
The required liability insurance must cover claims related to bodily and personal injury, death, and property damage that occur due to the operation or activities of the Extreme Art Studio business or its personnel during their employment. Extreme Art Studio retains the right to mandate that franchisees obtain their insurance policies from a designated vendor.
Extreme Art Studio also reserves the right to increase the required coverage amounts or require different or additional insurance coverages to reflect inflation, new risks, changes in law, higher damage awards, or other relevant changes. Each insurance policy must name Extreme Art Studio and any designated affiliates as additional insured parties and provide 30 days' prior written notice before any cancellation, expiration, or material change to the policy. The policy must also include a waiver of all subrogation rights against Extreme Art Studio, its affiliates, and their successors and assigns. Franchisees must provide a certificate of insurance for builder's risk insurance before starting any renovations or construction and must furnish copies of insurance certificates at least 30 days before opening and as routinely requested by Extreme Art Studio.
Franchisees are required to notify Extreme Art Studio in writing of any accidents, injuries, occurrences, or claims that could lead to liability or claims against them or materially affect their Extreme Art Studio business. This notice must be provided no later than the date the insurance carrier is notified. This ensures that Extreme Art Studio is promptly informed of any potential issues and can take appropriate action.