What is the minimum per Occurrence limit for Comprehensive General Liability 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 Comprehensive General Liability insurance with a minimum per occurrence limit of $1,000,000. Additionally, the general aggregate and products/completed operations coverage must each be at least $2,000,000. Fitstop also requires Business Automobile Liability insurance with a $1,000,000 per occurrence limit, as well as Excess or Umbrella Insurance of $5,000,000 per occurrence and aggregate.
These insurance policies must cover both the franchisee and Fitstop, including their officers, directors, and nominees, as additional insureds. The policies should protect against any liability arising from the ownership, maintenance, or operation of the Fitstop franchise. Furthermore, Fitstop must receive a 30-day written notice if there are any cancellations, modifications, or terminations of the insurance policies.
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. Failure to maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination. Fitstop also retains the right to increase the required coverage amounts or require different or additional coverage periodically.