Is automobile insurance coverage required for all vehicles used in connection with the operation of the Gokhale Method franchised business?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1. Minimum Insurance Requirements. You shall procure, prior to the commencement of any activities or operations under this Agreement, and shall maintain in full force and effect at all times during the Term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the Term of this Agreement), at your expense, an insurance policy or policies protecting you, us, and the parties' respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Franchised Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of the Franchised Business. Such policy or policies shall be written by a responsible carrier or carriers acceptable to us and shall provide at least the types and minimum amounts of coverage specified in the Teachers' Manual or Policy Statements. Furthermore, for franchisees located within the United States such policy or policies shall name us and our subsidiaries and Affiliates as additional insureds. We shall have the right, from time to time, to make such changes in minimum policy limits and endorsements as we may determine in our reasonable discretion.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees are required to maintain automobile insurance coverage for all vehicles used in connection with the operation of the franchised business. This insurance must be in effect from the commencement of business activities and throughout the term of the Franchise Agreement, and for any necessary period after the term to cover events that occurred during the agreement.
The insurance policy must protect the franchisee, Gokhale Method, and their respective officers, directors, partners, agents, and employees against any claims related to personal injury, death, property damage, business interruption, or any loss, liability, or expense arising from the franchised business. In addition to automobile insurance, the franchisee must also maintain comprehensive general liability insurance, property insurance, casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, and product liability insurance.
The insurance policies must be written by a responsible carrier acceptable to Gokhale Method and provide at least the types and minimum amounts of coverage specified in the Teacher's Manual or Policy Statements. For franchisees located in the United States, Gokhale Method and its subsidiaries and affiliates must be named as additional insureds. Gokhale Method retains the right to make changes to the minimum policy limits and endorsements at its discretion. This requirement ensures that both the franchisee and Gokhale Method are protected from potential liabilities and financial losses associated with the operation of the franchise.