Does Fly To Fit require Workers Compensation coverage?
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, franchisees are required to obtain Workers Compensation coverage. The specific requirement for this coverage is determined by state law. This means that if a state legally mandates Workers Compensation insurance, a Fly To Fit franchisee operating in that state must secure such coverage.
In addition to Workers Compensation, Fly To Fit mandates several other insurance policies. These include "Special" causes of loss coverage, business interruption insurance covering at least 12 months of income, Commercial General Liability insurance with limits of $1,000,000 per occurrence and $2,000,000 in aggregate, and Business Automobile Liability insurance with a limit of $1,000,000.
Fly To Fit also requires that the franchisee's insurance policies, with the exception of Workers Compensation, list Fly To Fit and its affiliates as additional insured parties. These policies must include a waiver of subrogation in favor of Fly To Fit and its affiliates, be primary and non-contributing with any insurance carried by Fly To Fit, and stipulate that Fly To Fit receive 30 days' prior written notice of cancellation. It is the franchisee's responsibility to ensure they meet all insurance requirements to remain compliant with the Franchise Agreement.