If Floyds 99 obtains insurance on behalf of a franchisee, what costs will the franchisee be responsible for?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to procure or maintain the insurance that we require, we may (but are not required to) obtain the required insurance and charge the cost of the insurance to you. The costs to us of obtaining the insurance, together with a fee for our expenses in so acting, will be payable by you immediately upon notice. The foregoing remedies will be in addition to any other remedies we may have at law or in equity.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage. This includes comprehensive general liability insurance, unemployment and worker's compensation insurance, employment practices liability insurance, all-risk personal property insurance, and cyber liability insurance. The levels of coverage required are detailed in Item 8 of the FDD.
If a franchisee fails to secure or maintain the necessary insurance, Floyds 99 has the right, but not the obligation, to obtain the required insurance on the franchisee's behalf. In such a case, the franchisee is responsible for covering the costs of the insurance obtained by Floyds 99.
Furthermore, the franchisee must also pay a fee to cover Floyds 99's expenses incurred in obtaining the insurance. Both the insurance costs and the associated fee are payable immediately upon notice from Floyds 99. This remedy is in addition to any other legal or equitable remedies that Floyds 99 may pursue.