What kind of insurance is required for the Fitstop build-out?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to secure appropriate insurances in connection with the build-out of their premises. While the FDD excerpt specifies that franchisees must obtain insurance, it does not detail the specific types or amounts of coverage required for the build-out.

However, the document does state some general requirements for insurance policies. Fitstop and any party they designate must be named as additional insureds in the franchisee's insurance policies. This additional insured status must be primary, without requiring Fitstop or its designees to contribute financially to the coverage. This status applies to both ongoing and completed operations coverage for Comprehensive General Liability and Excess or Umbrella Insurance.

Fitstop also has the right, but not the obligation, to purchase insurance coverage if the franchisee fails to obtain the required insurance, and deduct the costs from any payments made to the franchisee. Fitstop can also relieve itself of the responsibility of purchasing and administering such insurance with 10 calendar days' notice. The document also states that the required insurance coverage limits may be increased, or new types of coverage may be added, based on federal, state, and local laws, as well as the Franchise Agreement.

Prospective Fitstop franchisees should consult the Fitstop operations manual or contact the franchisor directly to obtain a comprehensive list of required insurance types and coverage levels for the build-out phase, as well as ongoing operations. Franchisees should also seek advice from a qualified insurance professional to ensure they meet all requirements and adequately protect their business.