What is the minimum General Aggregate limit for Comprehensive General Liability insurance required for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| Comprehensive General Liability | $2,000,000 (General Aggregate) $2,000,000 (Products/Completed Operations) |
|---|---|
| Comprehensive General Liability | $1,000,000 |
| Business Automobile Liability, including | $1,000,000 (per Occurrence) |
| owned, hired and non-owned automobile | |
| insurance | |
| Excess or Umbrella Insurance | $5,000,000 (per Occurrence & Aggregate) |
| Workers Compensation Insurance | Statutory Limits |
| Employment Practices Liability Insurance | $1,000,000/$1,000,000/$1,000,000 |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to maintain Comprehensive General Liability insurance with a minimum General Aggregate limit of $2,000,000. Additionally, the Products/Completed Operations coverage must also have a limit of $2,000,000. Fitstop requires franchisees to acquire and maintain these minimum insurance policies during the entire term of the franchise. These minimums may be adjusted periodically in Fitstop's manuals or otherwise in writing.
Fitstop also stipulates that these insurance policies must insure both the franchisee and Fitstop, including its officers, directors, and nominees, as additional insureds. The policies should protect against any liability arising from the ownership, maintenance, or operation of the franchise business, regardless of its location. Furthermore, Fitstop must receive a 30-day written notice of any cancellation, modification, or termination of the insurance policies.
It is the franchisee's responsibility to determine if these minimum insurance coverage requirements are sufficient for their specific needs. Fitstop emphasizes that the stated insurance coverage requirements are only minimums, and franchisees should independently assess whether increased amounts or additional types of insurance are necessary. Failure to maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement. Fitstop retains the right to obtain the required insurance if the franchisee fails to do so, with the franchisee responsible for covering the premium costs upon demand.