What are the minimum limits for Workers Compensation Insurance required for a Fitstop franchise?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to maintain Workers Compensation Insurance with statutory limits. This means the franchisee must obtain coverage that complies with the minimum requirements set by the state laws where the Fitstop franchise is located. These statutory limits vary by state and are designed to cover medical expenses and lost wages for employees who get injured or become ill as a result of their job.

In addition to Workers Compensation Insurance, Fitstop requires franchisees to maintain other insurance policies, including Comprehensive General Liability coverage of $2,000,000 (General Aggregate) and $2,000,000 (Products/Completed Operations), Comprehensive General Liability of $1,000,000, Business Automobile Liability (including owned, hired, and non-owned automobile insurance) of $1,000,000 per occurrence, Excess or Umbrella Insurance of $5,000,000 per occurrence and aggregate, and Employment Practices Liability Insurance of $1,000,000/$1,000,000/$1,000,000. Fitstop also specifies minimum coverage for Employee Dishonesty /"3-D"/Comprehensive Crime Insurance at $300,000 per occurrence.

Fitstop retains the right to increase the required coverage amounts or mandate different or additional coverage periodically. Franchisees are responsible for determining if higher coverage amounts or additional insurance types are necessary for their specific circumstances. Failure to maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination. Fitstop may also obtain the required insurance on behalf of the franchisee if they fail to do so, with the franchisee responsible for reimbursing the premium costs.

Prospective Fitstop franchisees should carefully review the insurance requirements and consult with an insurance professional to ensure they obtain adequate coverage that complies with both Fitstop's mandates and state and federal laws. Understanding these requirements is crucial for protecting the franchisee's business and employees, and for maintaining compliance with the franchise agreement.