What is the minimum per occurrence and aggregate coverage amount required for Excess or Umbrella Insurance that Fitstop franchisees must maintain?
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) |
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 Excess or Umbrella Insurance with a minimum coverage of $5,000,000 per occurrence and $5,000,000 in aggregate.
This insurance protects both the franchisee and Fitstop, including its officers, directors, and nominees, against liabilities arising from the ownership, maintenance, or operation of the franchise. Fitstop must receive a 30-day written notice if the policy is canceled, modified, or terminated. Franchisees must provide copies of insurance policies and proof of payment to Fitstop within 30 days of issuance.
It is important to note that these insurance coverage requirements are minimums, and Fitstop advises franchisees to independently determine if higher amounts or additional types of insurance are necessary. Fitstop retains the right to periodically increase the required coverage amounts or mandate different or additional coverage. Failure to maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination.
Franchisees are also responsible for procuring and paying for any other insurance required by state or federal law. Fitstop does not generate revenue from franchisees' insurance purchases.