What are the required limits for Comprehensive General Liability insurance (General Aggregate and Products/Completed Operations) that a Fitstop franchisee must maintain?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage, including Comprehensive General Liability insurance. The required limits for this coverage are $2,000,000 for the General Aggregate and $2,000,000 for Products/Completed Operations. Additionally, Fitstop requires franchisees to name Fitstop and any party they designate as additional insureds in these policies, ensuring that Fitstop's interests are also protected under the franchisee's insurance.

This insurance requirement is fairly standard in the franchise industry, as it protects both the franchisee and the franchisor from potential liabilities arising from the operation of the business. The General Aggregate coverage provides a total limit for all claims during the policy period, while the Products/Completed Operations coverage specifically addresses liabilities arising from the goods or services provided by the Fitstop location, even after those services have been completed.

For a prospective Fitstop franchisee, understanding and securing the required insurance coverage is a crucial step in setting up the business. Failing to maintain the required insurance could result in a breach of the franchise agreement and potential termination of the franchise. It is important to shop around for the best insurance rates and ensure that the policy meets all of Fitstop's requirements, including the additional insured status for Fitstop and its designees.