Is statutory workers' compensation insurance required for a Gokhale Method franchise?
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.
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.
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 statutory workers' compensation insurance. This insurance is intended to protect the franchisee, Gokhale Method, their respective officers, directors, partners, agents, and employees against claims related to personal injury, death, or property damage occurring in connection with the franchised business.
In addition to workers' compensation, Gokhale Method requires franchisees to maintain commercial general liability insurance, property insurance, casualty insurance, business interruption insurance, and automobile insurance coverage for all vehicles used in the operation of the franchised business. The insurance policies must be issued by carriers approved by Gokhale Method, contain the types and minimum amounts of coverage, exclusions, and maximum deductibles as prescribed by Gokhale Method, name Gokhale Method and its affiliates as additional insureds, and provide for 30 days' prior written notice of any material modification, cancellation, or expiration of such policy.
The FDD specifies that if a franchisee's state requires greater coverage amounts than the minimums set by Gokhale Method, the franchisee must obtain and maintain coverage as required by their state. This ensures that franchisees meet all local legal requirements for insurance coverage. While Gokhale Method does not require franchisees to purchase insurance from any particular source, they must ensure that their policies meet the specified criteria and coverage amounts.