Who bears the cost of the required insurance policies for a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ees to support and upgrade the Computer System and Required Software. Franchisee will be required to pay the costs for technology licensed for use in the Facial Bar and with respect to the Computer System and Required Software. If Franchisor does not directly provide these services, Franchisee will be required to sign a separate agreement with Franchisor's designated provider of these services (which may be an Affiliate of Franchisor).
9.05 Insurance. Franchisee agrees to secure and maintain during the term of this Agreement, at its own cost, the following insurance policies by carriers approved by Franchisor:
(a) Such insurance as may be required by the terms of any lease for the Facial Bar or, if there is no such lease, Franchisee agrees to carry fire and extended coverage insurance (including, if applicable, flood and earthquake coverage) covering the building and all equipment, supplies, products, inventory, furniture, fixtures and other tangible property located in the Facial Bar or at the Premises in the amount of the full replacement value of such property.
(b) Commercial General Liability Insurance, including coverages for products/completed operations, contractual liability, personal and advertising injury, fire damage/damage to rented premises, and medical expenses, having a combined single limit for bodily injury and property damage of $1,000,000 per occurrence and $2,000,000 in the aggregate and, if Franchisee owns, rents or identifies any vehicles with any Mark or vehicles are used in connection with the operation of the Facial Bar, automobile liability coverage for owned, non-owned, scheduled and hired vehicles. All such coverages shall be on an occurrence basis and shall provide for waivers of subrogation in favor of Franchisor.
(c) Workers' compensation and professional liability insurance, or a similar policy if the Facial Bar is located in a non-subscriber state, covering all of its employees, with limits of at least $1,000,000, as well as any other insurance required by law. Such coverages shall provide for waivers of subrogation in favor of Franchisor.
(d) Abuse and molestation coverage with limits of at least $1,000,000 per occurrence.
(e) All risks coverage for full repair and replacement value of all of the property, equipment, furniture, fixtures and supplies used in the Facial Bar or at the Premises with no more than a $1,000 deductible.
Franchisee agrees that Franchisor shall be named as an additional insured under each of the foregoing insurance policies. Before the opening of the Facial Bar and, thereafter, at least thirty (30) days before the expiration of any such policy or policies, Franchisee shall deliver to Franchisor certificates of insurance evidencing the proper coverage with limits not less than those required hereunder, and all such certificates shall expressly contain endorsements requiring the insurance company to give Franchisor at least thirty (30) days written notice in the event of material alteration to, or termination, non-renewal, or cancellation of, the coverages evidenced by such certificates and notice of any claim filed under such policy within thirty (30) days after the filing of such claim. Franchisor may, from time to time, during the term of this Agreement, at its sole option, require that the minimum limits and types of insurance coverage, as specified above, be increased or changed as determined solely by Franchisor. If Franchisee at any time fails or refuses to maintain any insurance coverage required by Franchisor or to furnish satisfactory evidence thereof, Franchisor, at its option and in addition to its other rights and remedies hereunder, may, but need not, obtain such insurance coverage on behalf of Franchisee, and Franchisee shall pay to Franchisor on demand any premiums incurred by Franchisor in connection therewith.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchisee is responsible for securing and maintaining the required insurance policies at their own cost during the term of the agreement. This includes any insurance required by the lease for the Facial Bar. If there is no lease, the franchisee must carry fire and extended coverage insurance, including flood and earthquake coverage if applicable, covering the building and all equipment, supplies, products, inventory, furniture, fixtures, and other tangible property located in the Facial Bar, in an amount equal to the full replacement value of the property.
In addition to property coverage, the franchisee must also maintain Commercial General Liability Insurance with specific coverages for products/completed operations, contractual liability, personal and advertising injury, fire damage/damage to rented premises, and medical expenses. This liability insurance must have a combined single limit of $1,000,000 per occurrence and $2,000,000 in the aggregate. If the franchisee owns, rents, or identifies any vehicles with any Face Foundrie mark or uses vehicles in connection with the Facial Bar's operation, they must also carry automobile liability coverage for owned, non-owned, scheduled, and hired vehicles.
All insurance coverages must be on an occurrence basis and provide waivers of subrogation in favor of Face Foundrie. The franchisee must name Face Foundrie as an additional insured under each policy and provide certificates of insurance to Face Foundrie before opening the Facial Bar and at least 30 days before the expiration of any policy. These certificates must include endorsements requiring the insurance company to give Face Foundrie at least 30 days' written notice of any material alteration, termination, non-renewal, or cancellation of the coverages, as well as notice of any claim filed under the policy within 30 days after filing. Face Foundrie may increase or change the minimum limits and types of insurance coverage required at its sole discretion during the term of the agreement.
If the franchisee fails to maintain the required insurance coverage or provide satisfactory evidence, Face Foundrie has the option, but not the obligation, to obtain the insurance coverage on behalf of the franchisee, and the franchisee must pay Face Foundrie on demand for any premiums incurred. The franchisee's obligation to obtain and maintain the specified insurance policies is not limited by any insurance maintained by Face Foundrie, nor does it relieve the franchisee of liability under the indemnity provisions set forth in Section 17.02 of the agreement. The franchisee remains responsible for all loss, damage, and contractual liability to third persons originating from or in connection with the operation of the Facial Bar, as well as for all claims or demands for damages to property or for injury, illness, or death of persons resulting therefrom.