Can the Gokhale Method franchisor revise the insurance requirements?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
13. INSURANCE
- 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 su
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method requires franchisees to obtain and maintain specific insurance policies. These policies must protect the franchisee, Gokhale Method, and their respective officers, directors, partners, agents, and employees. The insurance must cover potential claims related to personal injury, death, property damage, business interruption, or any loss, liability, or expense connected to the franchised business.
The required insurance includes comprehensive general liability insurance, property insurance (covering fire, vandalism, and malicious mischief), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance for all vehicles used in the 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, the insurance policies must name Gokhale Method and its subsidiaries as additional insureds. This ensures that Gokhale Method is protected against potential liabilities arising from the franchisee's operations. The specific details regarding the types and minimum amounts of coverage are found in the Teachers' Manual or Policy Statements, which Gokhale Method can revise from time to time. Therefore, prospective franchisees should carefully review these documents and stay updated on any changes to the insurance requirements to ensure compliance and adequate protection.