What insurance policies must a Gokhale Method franchisee furnish copies of before opening their business?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Business; (c) You have furnished us with copies of all insurance policies required by this Agreement; (d) you have provided us with any further information or evidence as we may reasonably request in order to confirm that you are ready to teach; and (e) We have approved you to open and operate your Franchised Business
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, a franchisee must furnish copies of all required insurance policies before commencing any business activities. Specifically, before opening, the franchisee needs to provide copies confirming they have secured the necessary insurance coverage as mandated by the franchise agreement.
The required insurance policies must protect Gokhale Method, its officers, directors, partners, agents, and employees against claims related to personal injury, death, property damage, business interruption, or any loss, liability, or expense connected to the franchised business. This 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 minimum coverage types and amounts specified in the Teacher's Manual or Policy Statements. For franchisees in the United States, these policies must name Gokhale Method and its subsidiaries and affiliates as additional insureds. Gokhale Method retains the right to modify the minimum policy limits and endorsements as deemed necessary.
In practical terms, this means a prospective Gokhale Method franchisee needs to budget for a comprehensive insurance package and ensure all policies meet the franchisor's specific requirements. Failure to maintain adequate insurance coverage can result in a breach of the franchise agreement. The franchisee must furnish copies of these policies to Gokhale Method to demonstrate compliance before commencing operations.