What is the minimum per Occurrence & Aggregate limit for Excess or Umbrella 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) |
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 must maintain Excess or Umbrella Insurance with a minimum limit of $5,000,000 per occurrence and aggregate. This insurance is in addition to other required policies such as Comprehensive General Liability, Business Automobile Liability, and Workers Compensation Insurance.
Maintaining the required insurance coverage is a critical obligation for Fitstop franchisees. Failure to do so constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement. Fitstop has the right to obtain the necessary insurance coverage on behalf of the franchisee if they fail to do so, and the franchisee is responsible for reimbursing Fitstop for the premium costs.
Fitstop also retains the right to periodically increase the required coverage amounts or mandate different or additional types of insurance. Franchisees should stay informed of any changes to the insurance requirements to ensure they remain compliant with the franchise agreement. While Fitstop specifies minimum insurance requirements, franchisees are advised to independently assess whether higher coverage amounts or additional insurance types are necessary for their specific circumstances.