Can Gokhale Method change the minimum policy limits and endorsements for franchisee insurance?

According to Gokhale Method's 2024 Franchise Disclosure Document, Gokhale Method retains the right to modify the minimum insurance policy limits and endorsements required of franchisees.

Specifically, Gokhale Method can make changes to the minimum policy limits and endorsements at their reasonable discretion. Franchisees are obligated to secure and maintain various insurance policies, including comprehensive general liability insurance, property insurance, casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage. These policies must protect the franchisee, Gokhale Method, and their respective officers, directors, partners, agents, and employees against potential claims related to personal injury, death, property damage, business interruption, or any loss, liability, or expense connected to the franchised business.

The insurance policies must be written by carriers acceptable to Gokhale Method and provide at least the types and minimum amounts of coverage specified in the Teachers' Manual or Policy Statements. For franchisees in the United States, Gokhale Method and its subsidiaries and affiliates must be named as additional insureds on these policies.

This provision allows Gokhale Method to adapt insurance requirements over time, potentially increasing costs for franchisees if minimum coverage levels rise. Franchisees should factor in the potential for these changes when assessing the overall cost of investment and ongoing operational expenses.