Can Extreme Art Studio periodically increase the required amounts of insurance coverage?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio has the right to periodically increase the required amounts of insurance coverage. Specifically, Extreme Art Studio may increase coverage amounts or require different or additional insurance coverage to reflect factors like inflation, new risks, changes in law, higher damage awards, or other relevant changes.

This means that a franchisee's insurance costs could increase over time due to these changes. It is important to note that the franchisee is responsible for maintaining the required insurance coverage at their sole expense during the term of the Franchise Agreement.

To ensure compliance, the franchisee must provide copies of their insurance certificates or other evidence of coverage to Extreme Art Studio at least 30 days before opening and routinely as requested. The insurance policies must be purchased from licensed insurers with a rating of "A/VIII" or higher by A.M. Best Company and must be authorized to do business in the state where the Extreme Art Studio Business is located and approved by Extreme Art Studio.