What is the minimum per Occurrence limit for Business Automobile Liability insurance, including owned, hired and non-owned automobile insurance, required for a Fitstop franchise?

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

This requirement ensures that Fitstop franchisees have adequate financial protection in the event of an automobile accident involving their business. The "per occurrence" limit means that the insurance policy will cover up to $1,000,000 for each separate incident, regardless of the number of claims arising from that incident.

Fitstop also mandates that these insurance policies must cover both the franchisee and Fitstop, including their officers, directors, and nominees, as additional insureds. Furthermore, Fitstop must receive a 30-day written notice of any cancellation, modification, or termination of the insurance policies. Franchisees must provide Fitstop with copies of all insurance policies and proof of payment within 30 days of issuance. While Fitstop sets minimum coverage requirements, 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 coverage constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement. Fitstop retains the right to obtain the necessary insurance coverage if a franchisee fails to do so, with the franchisee responsible for reimbursing Fitstop for the premium costs. Fitstop may also periodically increase the required coverage amounts or mandate different or additional coverage.