Which section of the Face Foundrie Franchise Agreement outlines insurance requirements?
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 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 31–32)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the insurance requirements are detailed within the Franchise Agreement. Item 8 of the FDD specifies that franchisees must obtain and maintain the insurance coverage that Face Foundrie requires, and they must also meet all other insurance-related obligations as outlined in the Franchise Agreement. Franchisees are responsible for providing proof of coverage to Face Foundrie on a periodic basis. The specific minimum amounts of insurance coverage are detailed in the Franchise Agreement.
The FDD specifies the minimum insurance coverages required. These include comprehensive general liability insurance with limits of at least $1,000,000 per occurrence and $2,000,000 in the general aggregate. Additionally, franchisees must maintain abuse and molestation coverage with limits of at least $1,000,000 per occurrence, as well as all risks coverage for the full repair and replacement value of all property, equipment, furniture, fixtures, and supplies used in the Facial Bar, with no more than a $1,000 deductible. Worker's compensation and professional liability insurance with limits of at least $1,000,000 are also required, along with any other insurance mandated by law. 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.
The cost of insurance will vary based on factors such as the insurance carriers' charges, the terms of payment, and the franchisee's insurance history. Prospective franchisees should carefully review the Franchise Agreement to understand the full scope of their insurance obligations and consult with insurance professionals to obtain appropriate coverage. This ensures compliance with Face Foundrie's requirements and adequate protection for their business.
It is typical in franchising for the franchise agreement to specify required insurance coverages, as this protects both the franchisee and the franchisor from potential liabilities. Franchisees should factor these insurance costs into their overall business plan and financial projections.