What must a Fly Fitness franchisee provide to the franchisor as evidence of insurance?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- 15.5 Additional Insured.
All required insurance policies shall name Franchisor and their affiliates and their members, officers, agents, and employees as additional insureds as their interests may appear.
All public liability policies shall contain a provision that the additional insureds, although named as insureds, shall nevertheless be entitled to recover under such policies on any loss caused by Franchisee or Franchisee's servants, agents, or employees.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees must provide proof of insurance coverage to Fly Fitness within thirty days of any required new limits or types of coverage implemented by the franchisor. Fly Fitness retains the right to increase the minimum insurance requirements or add additional types of insurance as they deem necessary.
This means that a Fly Fitness franchisee needs to stay informed about any changes to the insurance requirements communicated by Fly Fitness. It is the franchisee's responsibility to ensure they obtain the necessary coverage and provide documentation to Fly Fitness in a timely manner. Failure to comply with these insurance requirements could potentially lead to a breach of the franchise agreement.
In addition, all required insurance policies must name Fly Fitness and its affiliates, members, officers, agents, and employees as additional insureds. The public liability policies must contain a provision that the additional insureds are entitled to recover under such policies for any loss caused by the franchisee or their staff, even though they are named as insureds.