Does the insurance requirement for Gokhale Method extend to us and our Affiliates?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
surance
You must maintain in force commercial general liability insurance 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, and automobile insurance coverage for all vehicles used in connection with the operation of the Franchised Business. All insurance policies must: (1) be issued by carriers approved by us; (2) contain the types and minimum amounts of coverage, exclusions and maximum deductibles as we prescribe periodically; (3) name us and our Affiliates as additional insureds; (4) provide for 30 days' prior written notice to us of any material modification, cancellation or expiration of such policy; and (5) include such other provisions as we may require periodically. We do not require you to purchase insurance from any particular source.
Identified below are the types and minimum coverage amounts that currently we require for each franchised Gokhale Method business. If your state requires greater coverage amounts for the categories listed below, you must obtain and maintain coverage as required by your state.
COMMERCIAL GENERAL LIABILITY:
General Aggregate Limit: $3,000,000 Personal Injury Limit: $1,000,000
COMMERCIAL OR PERSONAL AUTOMOBILE LIABILITY:
Bodily Injury and Property Damage Combined Single Limit: $1,000,000 Hired and Non-Owned Liability Limit: $1,000,000
Please note, the landlord for the location where you conduct your classes may have its own insurance coverage requirements that apply additionally to our requirements for insurance c
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees are required to maintain commercial general liability insurance that protects not only the franchisee but also Gokhale Method and its affiliates, along with their respective officers, directors, partners, agents, and employees. This insurance coverage must address 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, and automobile insurance for all vehicles used in the business. All insurance policies must be issued by carriers approved by Gokhale Method, contain the types and minimum amounts of coverage and maximum deductibles prescribed by Gokhale Method, name Gokhale Method and its affiliates as additional insureds, provide 30 days' prior written notice of any material modification, cancellation, or expiration, and include other provisions as Gokhale Method may require.
The FDD specifies minimum coverage amounts for commercial general liability ($3,000,000 general aggregate limit and $1,000,000 personal injury limit) and commercial or personal automobile liability ($1,000,000 combined single limit for bodily injury and property damage, and $1,000,000 for hired and non-owned liability). Franchisees must adhere to these minimums or obtain higher coverage if required by their state. Additionally, the landlord of the location where classes are conducted may have their own insurance requirements that apply in addition to Gokhale Method's requirements.