When must a certificate of insurance be provided to Fat Shack as to the insurance coverage maintained?

According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must provide a certificate of insurance as evidence of maintained insurance coverage in two instances. First, the franchisee must provide the certificate prior to opening their Fat Shack Restaurant. Second, the franchisee must provide the certificate within 15 days after each insurance policy renewal.

The required insurance coverage includes comprehensive general liability insurance with a limit of not less than $1 million per occurrence and $2 million aggregate, automobile liability insurance with a single limit coverage of not less than $100,000, unemployment and worker's compensation insurance, and all-risk personal property insurance in an amount equal to at least 100 percent of the replacement costs.

Fat Shack must be named as an additional insured with waiver of subrogation on all required policies, and the policies must provide for a 30-day advance written notice to Fat Shack of cancellation. This ensures that Fat Shack is protected from potential liabilities arising from the franchisee's operations and has sufficient time to find alternative coverage if a policy is canceled.