Where can additional coverage and higher policy limits for Fly Fitness insurance be specified?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Increase in Coverage.The levels and types of insurance stated herein are minimum requirements.
Franchisor reserves the right to raise the required minimum requirements for any type of insurance or add additional types of insurance requirements as Franchisor deems reasonably prudent to require.
Within thirty (30) days of any such required new limits or types of coverage, Franchisee must submit proof to Franchisor of Franchisee's coverage pursuant to Franchisor's requirements.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the levels and types of insurance stated in the franchise agreement are minimum requirements. Fly Fitness reserves the right to increase the required minimum requirements for any type of insurance or add additional types of insurance requirements as Fly Fitness deems reasonably prudent to require.
This means that while the franchise agreement specifies certain minimum insurance coverage levels, Fly Fitness has the authority to increase these requirements or add new types of insurance coverage during the term of the agreement. This could be due to changes in industry standards, increased risk factors, or other business-related reasons.
Within thirty (30) days of any such required new limits or types of coverage, the franchisee must submit proof to Fly Fitness of the franchisee's coverage pursuant to Fly Fitness's requirements. Therefore, a prospective franchisee should be prepared to adjust their insurance coverage and costs if Fly Fitness increases the minimum requirements or adds new types of coverage during the franchise term.