When must Fitstop franchisees provide evidence of insurance premium payments and duplicate policies to Fitstop?
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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must provide evidence of insurance premium payments and duplicate copies of policies to Fitstop in two specific instances. First, this evidence is due no less than 30 calendar days prior to the date the franchisee opens for business. Second, it is also due no less than 30 calendar days prior to the expiration date of an existing insurance policy.
This requirement ensures that Fitstop has ample time to verify that the franchisee has obtained the necessary insurance coverage before commencing operations and that the coverage remains continuously in effect. The 30-day advance notice allows Fitstop to follow up on any discrepancies or lapses in coverage, protecting both the franchisee and the Fitstop brand from potential liabilities.
It is also the franchisee's responsibility to ensure that their insurance policies are in effect on or prior to the date they begin servicing members. Furthermore, the franchisee must ensure that the insurer provides Fitstop with at least 30 days' written notice before any cancellations or material changes to the policy. The insurance policies must also include a waiver of subrogation favoring Fitstop, its officers, and directors. These stipulations are designed to provide Fitstop with comprehensive protection and oversight regarding the franchisee's insurance coverage.