Where in the Floyds 99 Franchise Agreement is information about insurance requirements located?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
23. INSURANCE
23.1 Insurance Coverage. The Franchisee shall procure, maintain and provide evidence of (i) comprehensive general liability insurance for the Franchised Location and its operations with a limit of not less than $2,000,000.00 combined single limit or with such greater limits or such other terms and conditions as may be described in the Operations Manual or required as part of any lease agreement for the Franchised Location; (ii) unemployment and worker's compensation insurance with a broad form all-states endorsement coverage sufficient to meet the requirements of the law; (iii) employment practices liability insurance of not less than $500,000 to $1,000,000 per claim, including third-party liability, wage and hour defense costs and punitive and exemplary damages claims, where insurable; (iv) all-risk personal property insurance in an amount equal to at least 100% of the replacement costs of the contents and tenant improvements located at the FLOYD'S 99 Shop; and (v) cyber liability insurance with a limit of not less than $1,000,000 per claim. All of the required policies of insurance shall name the Franchisor as an additional insured and shall provide for a 30-day advance written notice to the Franchisor of cancellation. The Franchisor shall have the right upon 60 days prior written notice to the Franchisee to revise the coverage limits and types of required insurance described in this Section 23.1.
[Item 22: CONTRACTS]
23.2 Proof of Insurance Coverage. The Franchisee will provide proof of insurance to the Franchisor prior to commencement of operations at its FLOYD'S 99 Shop. This proof will show that the insurer has been authorized to inform the Franchisor if any policies lapse or are cancelled. Noncompliance with the insurance provisions set forth herein shall be deemed a material breach of this Agreement; in the event of any lapse in insurance coverage, in addition to all other remedies, the Franchisor shall have the right to demand that the Franchisee cease operations of the FLOYD'S 99 Shop until coverage is reinstated, or, in the alternative, pay any delinquencies in premium payments and charge the same back to the Franchisee.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 29–30)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the insurance requirements are detailed in Section 23 of the Franchise Agreement. Specifically, Section 23.1 outlines the required insurance coverage, including comprehensive general liability insurance with a limit of not less than $2,000,000, unemployment and worker's compensation insurance, employment practices liability insurance between $500,000 and $1,000,000 per claim, all-risk personal property insurance, and cyber liability insurance with a limit of not less than $1,000,000 per claim.
Furthermore, the Floyds 99 Franchise Agreement stipulates that all required insurance policies must name the Franchisor as an additional insured and provide a 30-day advance written notice to the Franchisor in case of cancellation. Floyds 99 also retains the right to revise the coverage limits and types of required insurance with a 60-day prior written notice to the franchisee.
Section 23.2 emphasizes that franchisees must provide proof of insurance to Floyds 99 before commencing operations, demonstrating that the insurer is authorized to inform Floyds 99 of any policy lapses or cancellations. Noncompliance with these insurance provisions constitutes a material breach of the Franchise Agreement, potentially leading to a demand to cease operations until coverage is reinstated or allowing Floyds 99 to pay any premium delinquencies and charge them back to the franchisee.