Are Face Foundrie franchisees required to provide insurance certificates to the franchisor?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Franchisee's obligation to obtain and maintain, or cause to be obtained and maintained, the foregoing policy or policies in the amounts specified shall not be limited in any way by reason of any insurance which may be maintained by Franchisor, nor shall Franchisee's performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 17.02 hereof. Notwithstanding the existence of such insurance, Franchisee, as agreed above, is and shall be responsible for all loss or damage and contractual liability to third persons originating from or in connection with the operation of the Facial Bar and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
Yes, according to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are required to provide insurance certificates to the franchisor. Specifically, before opening their Facial Bar and at least 30 days before the expiration of any insurance policy, franchisees must deliver certificates of insurance to Face Foundrie. These certificates must evidence proper coverage with limits no less than those required by the agreement.
The certificates must also include endorsements requiring the insurance company to provide Face Foundrie with at least 30 days' written notice in the event of any material alteration, termination, non-renewal, or cancellation of the coverage. Additionally, Face Foundrie must be notified of any claim filed under the policy within 30 days after the claim is filed. Face Foundrie retains the right to modify the minimum limits and types of required insurance coverage during the term of the agreement.
If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of it, Face Foundrie has the option to obtain the insurance on the franchisee's behalf, and the franchisee will be required to pay Face Foundrie the premiums incurred. The franchisee's insurance obligations are not limited by any insurance Face Foundrie may maintain, nor does it relieve the franchisee of liability under the indemnity provisions outlined in Section 17.02 of the agreement. Franchisees remain responsible for all loss, damage, and contractual liability to third persons, as well as claims for damages to property or injury, illness, or death resulting from the operation of the Facial Bar.