What is the minimum worker's compensation coverage a Fly Fitness franchisee must maintain?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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Before you open for business, you must purchase and maintain the minimum insurance coverage that we specify. This includes commercial general liability insurance, including coverage for professional liability and sexual abuse of at least $1 million per occurrence and $3 million aggregate; worker's compensation coverage in the limits required by the state in which the Franchised Business is located; business interruption insurance; property insurance for the full replacement value of furniture, fixtures, equipment, vehicles, inventory, and leasehold improvements or $50,000, whichever is greater; and comprehensive automobile insurance of $1 million for any vehicle operated on behalf of the Franchised Business. Each policy must be written by a responsible carrier or carriers acceptable to us and must name us and our respective officers, directors, partners, agents, and employees as additional insured parties, as their interests may appear. We reserve the right to require additional types of insurance and coverage as prov
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are required to maintain worker's compensation coverage. The specific limits of this coverage are determined by the requirements of the state in which the Fly Fitness franchise is located.
This means that the amount of worker's compensation insurance a franchisee needs will vary depending on state laws. Worker's compensation typically covers medical expenses and lost wages for employees who are injured on the job. It is a crucial insurance to protect both the employees and the business from financial liabilities associated with workplace injuries.
Prospective Fly Fitness franchisees should research the worker's compensation requirements in their specific state to understand the minimum coverage levels they must maintain. They should also consult with an insurance professional to ensure they have adequate coverage to meet both the state requirements and the potential needs of their business. This ensures compliance and protects against potential financial risks associated with employee injuries.