Are there any exceptions to the minimum insurance requirements for a Gokhale Method franchisee?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1. Minimum Insurance Requirements. You shall procure, prior to the commencement of any activities or operations under this Agreement, and shall maintain in full force and effect at all times during the Term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the Term of this Agreement), at your expense, an insurance policy or policies 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, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of the Franchised Business. Such policy or policies shall be written by a responsible carrier or carriers acceptable to us and shall provide at least the types and minimum amounts of coverage specified in the Teachers' Manual or Policy Statements. Furthermore, for franchisees located within the United States such policy or policies shall name us and our subsidiaries and Affiliates as additional insureds. We shall have the right, from time to time, to make such changes in minimum policy limits and endorsements as we may determine in our reasonable discretion.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees must adhere to minimum insurance requirements. Prior to commencing any activities, a franchisee is required to secure and maintain insurance policies throughout the term of the agreement. These policies should protect the franchisee, Gokhale Method, and their respective officers, directors, partners, agents, and employees against claims related to personal injury, death, property damage, business interruption, or any loss connected with the franchised business.
The required insurance coverage 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 specific types and minimum amounts of coverage are detailed in the Teachers' Manual or Policy Statements.
For franchisees in the United States, these insurance 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. The FDD does not explicitly state any exceptions to these minimum insurance requirements, suggesting that all franchisees must comply with the standard insurance obligations as outlined in the agreement and related documents.