What is the minimum notice required if the Gokhale Method franchisee's insurance policy is cancelled?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3. Certificates of Insurance. Prior to the commencement of any operations under this Agreement, and thereafter at least thirty (30) days prior to the expiration of any policy, you shall deliver to us Certificates of Insurance evidencing the proper types and minimum amounts of coverage. All Certificates shall expressly provide that no less than thirty (30) days' prior written notice shall be given to us in the event of material alteration to or cancellation of the coverages evidenced by such Certificates.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method requires that franchisees provide them with certificates of insurance. These certificates must be delivered at least 30 days before the expiration of any policy. The certificates must also expressly state that Gokhale Method will receive no less than 30 days' prior written notice if there are any material alterations to or cancellations of the insurance coverage.
This means that a Gokhale Method franchisee must ensure their insurance provider gives Gokhale Method a minimum of 30 days' notice before any changes or cancellation to their insurance policy. This allows Gokhale Method time to confirm the franchisee has obtained replacement coverage to maintain continuous insurance, as required by the franchise agreement.
If a franchisee fails to maintain the required insurance coverage, Gokhale Method has the right, but not the obligation, to procure insurance on behalf of the franchisee. The franchisee is then responsible for immediately paying the premiums and any associated expenses to Gokhale Method. This protects Gokhale Method from potential liabilities arising from the franchisee's operations and ensures compliance with the franchise agreement's insurance requirements.