What is the minimum duration of business interruption insurance required for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.1.4.
Business.
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.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees must maintain business interruption insurance for at least twelve months. This insurance coverage should be sufficient to meet the franchisee's financial obligations outlined in the Franchise Agreement and the lease for the Fly Fitness location.
This requirement ensures that in the event of unforeseen circumstances that disrupt business operations, such as a natural disaster or property damage, the franchisee can continue to meet their financial responsibilities. The amount of coverage should be enough to cover ongoing expenses and any other obligations specified in the franchise agreement and lease.
It is important for prospective Fly Fitness franchisees to carefully assess their potential liabilities and ensure that the business interruption insurance policy adequately covers these obligations for the entire 12-month period. Franchisees should also be aware that Fly Fitness reserves the right to increase the minimum insurance requirements or add additional types of insurance as deemed necessary.