When must a Fitstop franchisee's 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, a franchisee's insurance policies must be in effect on or prior to the date they begin servicing members. Additionally, Fitstop requires franchisees to provide evidence of payment for their insurance premiums and duplicate copies of the policies no less than 30 calendar days before opening for business, and again 30 calendar days before the expiration date of any existing policy.
This requirement ensures that Fitstop franchisees have continuous insurance coverage from the moment they start providing services. It also allows Fitstop to verify that the franchisee has obtained the necessary insurance and that the policies meet the franchisor's requirements.
Furthermore, Fitstop mandates that all insurance policies include a provision requiring the insurer to provide written notice to Fitstop at least 30 calendar days before any cancellations or material changes to the policy. The insurer must also include a waiver of subrogation favoring Fitstop, its officers, and directors. These stipulations protect Fitstop from potential liabilities and ensure they are informed of any changes to the franchisee's insurance coverage. Fitstop also requires that the insurance company be reputable, licensed to do business in the state where the franchise is located, and have a Financial Size Category of IX or greater and a Policyholders Rating of "A+" or "A" as assigned by Alfred M. Best and Company, Inc., unless Fitstop approves otherwise.