When must Fitstop franchisees' insurance policies be in effect?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.2.2 You shall provide evidence of payment of premiums of the aforementioned insurance policies and duplicate copies of policies to us no less than 30 calendar days prior to the date that you open for business and/or 30 calendar days prior to the expiration date of an existing policy of insurance.
- 8.2.3 Your insurance policies shall be in effect on or prior to the date that you begin servicing members.
- 8.2.4 You shall cause the insurer to include as a provision in all insurance policies that the insurer must give written notice to us no less than 30 calendar days prior to any cancellations of or material changes to the policy.
- 8.2.5 You shall cause the insurer to include as a provision in all insurance policies a waiver of subrogation favoring us, our officers, and our directors.
- 8.2.6 You shall obtain all insurance policies from a reputable insurance company licensed to do business in the state in which your Franchise is located and having a Financial Size Category equal to or greater than IX and Policyholders Rating of "A+" or "A", as assigned by Alfred M. Best and Company, Inc., unless the we approve otherwise.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees' insurance policies must be in effect on or prior to the date that they begin servicing members. Additionally, Fitstop requires franchisees to provide evidence of payment of premiums and duplicate copies of policies no less than 30 calendar days prior to the date that they open for business and/or 30 calendar days prior to the expiration date of an existing policy of insurance.
This means a prospective Fitstop franchisee needs to secure all required insurance coverage well in advance of their grand opening. They must budget enough time to obtain the policies, submit proof of coverage and payment to Fitstop at least 30 days before opening, and ensure the policies are active before they start providing services to members. Failure to comply with these insurance requirements could delay the opening of the Fitstop franchise or potentially lead to a breach of the franchise agreement.
Fitstop also mandates that the insurer provide written notice to them no less than 30 calendar days prior to any cancellations of or material changes to the policy. The insurer must include a waiver of subrogation favoring Fitstop, its officers, and its directors in all insurance policies. Furthermore, Fitstop requires that all insurance policies be obtained from a reputable insurance company licensed to do business in the state where the franchise is located and having a Financial Size Category equal to or greater than IX and Policyholders Rating of "A+" or "A", as assigned by Alfred M. Best and Company, Inc., unless Fitstop approves otherwise.