What is the required general aggregate coverage amount for the Comprehensive General Liability 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) |
| Workers Compensation Insurance | Statutory Limits |
| Employment Practices Liability Insurance | $1,000,000/$1,000,000/$1,000,000 |
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 Comprehensive General Liability insurance with a general aggregate coverage of $2,000,000 and $2,000,000 for Products/Completed Operations.
In addition to the Comprehensive General Liability insurance, Fitstop franchisees must also maintain other insurance policies, including Comprehensive General Liability insurance of $1,000,000, Business Automobile Liability insurance with a limit of $1,000,000 per occurrence, Excess or Umbrella Insurance of $5,000,000 per occurrence and aggregate, Workers Compensation Insurance at statutory limits, and Employment Practices Liability Insurance with limits of $1,000,000/$1,000,000/$1,000,000.
Fitstop may periodically increase the amount of coverage required and/or require different or additional coverage. Franchisees are responsible for determining if increased amounts or additional types of insurance are appropriate for their business. Failure to obtain and maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination.