Does Face Foundrie require franchisees to submit proof of insurance coverage, and if so, how often?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
or fees on purchases that are assessed by such groups or programs.
Insurance
You must obtain and maintain, at your own expense, the insurance coverage we require, and you must meet the other insurance-related obligations in the Franchise Agreement. You will be required to obtain proof of coverage and submit the same to us on a periodic basis. We specify the minimum amount of insurance coverage
in the Franchise Agreement; however, you may desire to obtain greater coverages. The cost of your insurance will vary depending on the insurance carriers' charges, the terms of payment, and your insurance history.
Presently, we require you to maintain the following minimum insurance coverages: (i) comprehensive general liability insurance with limits of at least $1,000,000 per occurrence, and $2,000,000 in the general aggregate; (ii) abuse and molestation coverage with limits of at least $1,000,000 per occurrence; (iii) all risks coverage for full repair and replacement value of all of the property, equipment, furniture, fixtures and supplies used in your Facial Bar with no more than a $1,000 deductible; and (iv) worker's compensation and professional liability insurance with limits of at least $1,000,000, as well as any other insurance required by law. We also recommend that you obtain cyber liability insurance with
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–31)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain insurance coverage as specified by Face Foundrie. Franchisees must also provide proof of this coverage to Face Foundrie on a periodic basis. The specific frequency of these submissions is not detailed in this document but is likely outlined in the Franchise Agreement itself.
Face Foundrie specifies minimum insurance coverage requirements, but franchisees have the option to obtain greater coverage if desired. The cost of insurance will vary based on factors such as the insurance carrier's charges, payment terms, and the franchisee's insurance history.
The minimum insurance coverages currently required include comprehensive general liability insurance ($1,000,000 per occurrence, $2,000,000 in the general aggregate), abuse and molestation coverage ($1,000,000 per occurrence), all risks coverage for the full repair and replacement value of property with no more than a $1,000 deductible, and worker's compensation and professional liability insurance ($1,000,000). Face Foundrie also recommends cyber liability insurance with coverage of at least $1,000,000 for each occurrence and $3,000,000 in the aggregate.
Prospective franchisees should carefully review the Franchise Agreement to understand the exact insurance submission schedule and ensure they can meet these requirements. They should also consult with insurance professionals to determine the best coverage options and costs for their specific circumstances.