Can Gokhale Method require other provisions in the insurance policies periodically?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees are required to maintain several types of insurance coverage, including commercial general liability insurance, property insurance, casualty insurance, business interruption insurance, statutory workers' compensation insurance, and automobile insurance coverage. These policies protect the franchisee, Gokhale Method, and their respective personnel against various risks associated with the franchised business.
Gokhale Method has the authority to set the types and minimum amounts of coverage, exclusions, and maximum deductibles for these insurance policies. Furthermore, Gokhale Method can require that the insurance policies include other provisions periodically. Franchisees must ensure that all insurance policies are issued by carriers approved by Gokhale Method, name Gokhale Method and its affiliates as additional insureds, and provide 30 days' prior written notice of any material modification, cancellation, or expiration of the policy.
It is important to note that the minimum coverage amounts required by Gokhale Method may be superseded by state law if the state requires greater coverage. Additionally, landlords may have their own insurance coverage requirements that apply in addition to Gokhale Method's requirements. Therefore, prospective franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and consult with an insurance professional to ensure they obtain adequate coverage that complies with all applicable requirements.