Where are the insurance requirements for Fly To Fit described?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
nt as Exhibit D).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notic
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the insurance requirements are detailed within the Franchise Agreement and the Brand Standards Manual. Specifically, the FDD mentions several types of required insurance coverage. These include "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance with a $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, Business Automobile Liability insurance of not less than $1,000,000, and Workers Compensation coverage as required by state law.
For a prospective Fly To Fit franchisee, this means they will need to secure these specific insurance policies to operate their franchise. The policies, except for Workers Compensation, must list Fly To Fit and its affiliates as additional insured, include a waiver of subrogation, be primary and non-contributing with any insurance carried by Fly To Fit, and provide Fly To Fit with 30 days' prior written notice of cancellation. This ensures that Fly To Fit is protected under the franchisee's insurance policies and receives advance notice of any changes or cancellations.
The franchisee bears the responsibility for maintaining these insurance policies, which can add to the operational costs of the franchise. It is important for potential franchisees to fully understand these insurance obligations and factor the costs into their financial projections. Furthermore, franchisees should carefully review the Franchise Agreement and Brand Standards Manual for the complete and most up-to-date insurance requirements, as these may be subject to change.
Franchisors typically mandate specific insurance coverages to protect their brand and business interests, and the requirements outlined for Fly To Fit are fairly standard within the franchising industry. Franchisees should consult with an insurance professional to ensure they obtain the appropriate coverage that meets Fly To Fit's requirements and complies with local and state laws.