What determines the limits for worker's compensation coverage for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.1.2.
Employment.
Worker's compensation coverage in the limits required by state law, as well as such other insurance as may be required by statute or rule of the state in which the Franchised Business is located and operated;
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the worker's compensation coverage limits for a franchisee are determined by the requirements of state law where the franchised business is located and operated. Fly Fitness also requires franchisees to maintain any other insurance coverage mandated by statute or rule in that state.
This means a prospective Fly Fitness franchisee must research and comply with their specific state's regulations regarding worker's compensation insurance. The required coverage can vary significantly from state to state, impacting the franchisee's operational costs. Factors influencing these costs include the number of employees, the type of work they perform, and the state's specific laws.
Fly Fitness also retains the right to increase the minimum insurance requirements or add additional types of insurance as they deem reasonably prudent. If Fly Fitness increases the insurance requirements, the franchisee must provide proof of coverage within 30 days. This clause allows Fly Fitness to adapt to changing risk landscapes or legal requirements, but it also means franchisees must be prepared for potential increases in their insurance expenses during the franchise term.