What is the minimum per occurrence coverage amount required for Business Automobile Liability insurance, including owned, hired, and non-owned automobile insurance, that Fitstop franchisees must maintain?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to maintain Business Automobile Liability insurance with a minimum coverage of $1,000,000 per occurrence. This insurance must include coverage for owned, hired, and non-owned automobiles.

This requirement ensures that Fitstop franchisees have adequate financial protection in the event of an automobile accident involving their business operations. The per occurrence limit means that the policy will cover up to $1,000,000 for each separate incident. It is important for prospective franchisees to understand that this is just the minimum requirement, and they should assess their individual risk and consider whether higher coverage limits are appropriate.

Fitstop also stipulates that these insurance coverage requirements are only minimums, and franchisees need to make an independent determination as to whether increased amounts or additional types of insurance are appropriate. Failure to obtain and maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement. Fitstop may also obtain the insurance at the franchisee's expense if the franchisee fails to do so.

Franchisees must provide Fitstop with original or duplicate copies of all insurance policies, certificates of insurance, or other proof of insurance acceptable to them, along with proof of payment within 30 days of issuance. Additionally, Fitstop must receive a 30-day written notice of cancellation, modification, or termination of the policies. This ensures that Fitstop is aware of any changes in the franchisee's insurance coverage and can take appropriate action if necessary.