What specific coverage is required for property of the Fly To Fit business, and what value should it cover?

According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees must obtain and maintain specific insurance policies. For the business's property, franchisees are required to have "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief. This coverage must be for the full repair and replacement value of all business property, though it may be subject to a reasonable deductible.

In practical terms, this means a Fly To Fit franchisee needs to insure their physical assets against a range of potential hazards. The insurance should cover costs to fully repair or replace damaged or lost property. The franchisee is responsible for determining what a reasonable deductible is.

It is important to note that the specific types and amounts of insurance policies are determined by Fly To Fit and specified in the Manual. If not specified in the Manual, the franchisee must maintain at least the coverage mentioned above. Franchisees should consult the Manual and communicate with Fly To Fit to ensure they meet all insurance requirements, as failure to maintain adequate coverage could result in a breach of the franchise agreement.