Is a Floyds 99 franchisee required to provide proof of insurance coverage?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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.
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.
24. MISCELLANEOUS PROVISIONS
- 24.1 Modification. The Franchisor and/or the Franchisee may modify this Agreement only upon execution of a written agreement between the two parties. The Franchisee acknowledges that the Franchisor may modify its standards, specifications and operating and marketing procedures set forth in the Operations Manual unilaterally under any conditions and to the extent in which the Franchisor, in its sole discretion, deems necessary to protect, promote or improve the Marks and the quality of the Licensed Methods, but under no circumstances will such modifications be made arbitrarily without such determination.
- 24.2 Entire Agreement. This Agreement, including all exhibits and addenda, and the Operations Manual, contain the entire agreement between the parties and supersedes any and all prior agreements concerning the subject matter hereof. No modifications of this Agreement shall be effective except those in writing and signed by both parties.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are required to provide proof of insurance coverage to the franchisor before commencing operations at their Floyds 99 shop. This proof must demonstrate that the insurer is authorized to inform the franchisor if any policies lapse or are canceled.
Noncompliance with these insurance provisions is considered a material breach of the Franchise Agreement. If insurance coverage lapses, Floyds 99 has the right to demand that the franchisee cease operations until coverage is reinstated. Alternatively, Floyds 99 can pay any overdue premium payments and charge the franchisee for these costs.
Furthermore, franchisees must procure and maintain specific insurance coverage, including comprehensive general liability insurance of at least $2,000,000, unemployment and worker's compensation insurance, employment practices liability insurance of not less than $500,000 to $1,000,000 per claim, all-risk personal property insurance equal to 100% of the replacement costs, and cyber liability insurance with a limit of not less than $1,000,000 per claim. All required policies must name Floyds 99 as an additional insured and provide a 30-day advance written notice of cancellation to the franchisor. Floyds 99 retains the right to revise the coverage limits and types of required insurance with 60 days prior written notice to the franchisee.