Where can a Gold Star franchisee find the specific insurance requirements?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2 Property Insurance. FRANCHISEE shall insure the Retail Location and other improvements, equipment, furnishings, and other fixtures and any additions thereto in accordance with standard fire and extended coverage insurance policies then in effect for similar businesses. FRANCHISEE shall, upon request, exhibit evidence of such insurance to the COMPANY.
- 18.3 Certificates of Insurance. Before construction commences and before the Retail Location opens for business, the appropriate certificates of insurance showing compliance with the requirements of this Section 18 shall be furnished by FRANCHISEE to the COMPANY. Such certificates shall state that the policy or policies shall not be canceled or altered without at least thirty (30) days' prior written notice to the COMPANY. Maintenance of such insurance and the performance by FRANCHISEE of its obligations under this Section 18 shall not relieve FRANCHISEE of liability or limit such liability under the indemnity provisions of this Agreement.
- 18.4 Changes to Insurance Requirements. The COMPANY shall have right to increase the minimum coverage, decrease the maximum deductible, or require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances by providing written notice of such changes to FRANCHISEE at least thirty (30) days prior to enacting such requirement.
- 18.5 Failure to Maintain Insurance. If FRANCHISEE fails to procure or maintain insurance as herein required, the COMPANY may at its option (but shall not be obligated to), in addition to its other rights and remedies hereunder, procure such insurance and, in such event, FRANCHISEE shall, upon demand from time to time, reimburse the COMPANY for the costs and premiums thereof together with interest thereon from the date such costs are incurred by COMPANY at the rate specified in Section 8.3, above.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the specific insurance requirements for franchisees are detailed in Section 18. The FDD states that franchisees must insure their Retail Location and other improvements, equipment, furnishings, and other fixtures with standard fire and extended coverage insurance policies, consistent with what similar businesses typically carry. Franchisees are required to provide evidence of such insurance to Gold Star upon request.
Before construction commences and before the Retail Location opens, franchisees must furnish certificates of insurance to Gold Star, demonstrating compliance with Section 18 requirements. These certificates must state that the insurance policies cannot be canceled or altered without at least thirty (30) days' prior written notice to Gold Star.
Gold Star has the right to modify the insurance requirements by increasing minimum coverage, decreasing maximum deductibles, or requiring different or additional kinds of insurance. They will provide written notice of these changes to the franchisee at least thirty (30) days before they take effect. If a franchisee fails to maintain the required insurance, Gold Star has the option to procure the insurance themselves and charge the franchisee for the costs and premiums, along with interest.