When must a Fly Fitness franchisee obtain comprehensive automobile liability insurance?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
usiness. Business interruption insurance for a minimum of twelve (12) months, in an amount necessary to satisfy Franchisee's obligations under this Agreement and the lease for the Franchised Business location.
- 15.1.5. Automobile Insurance. Prior to operation of any vehicle on behalf of the Franchised Business, Franchisee must obtain comprehensive automobile liability insurance in the amount of at least a combined single limit for bodily injury and property damage of One Million Dollars ($1,000,000), or greater if required by state law.
- 15.2. Evidence of Insurance. Franchisee shall deliver to, and maintain at all times with Franchisor, current Certificates of Insurance evidencing the existence and continuation of the required coverages. In addition, if requested by Franchisor, Franchisee shall deliver to Franchisor a copy of the insurance policy or policies required hereunder.
- 15.3. Failure to Procure. If, for any reason, Franchisee should fail to procure or maintain the insurance required by this Agreement as revised from time to time for all franchisees by the Manual or otherwise in writing, Franchisor shall have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge
Franchisee for the cost thereof together with a ten percent (10%) administrative fee for Franc
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee must obtain comprehensive automobile liability insurance prior to operating any vehicle on behalf of the franchised business. The required insurance must have a combined single limit for bodily injury and property damage of at least $1,000,000, or a greater amount if mandated by state law.
This requirement ensures that Fly Fitness franchisees have adequate financial protection in case of accidents involving vehicles used for the business. It protects both the franchisee and the franchisor from potential liabilities arising from vehicle-related incidents. Franchisees must also provide current Certificates of Insurance to Fly Fitness as evidence of their coverage and maintain these certificates at all times with the franchisor.
Failure to secure and maintain the required insurance allows Fly Fitness to procure the insurance on behalf of the franchisee. The franchisee will then be charged for the cost of the insurance, along with a 10% administrative fee to cover Fly Fitness's expenses, including attorney's fees. This cost is due immediately upon notice from Fly Fitness.