Is a Gold Star franchisee required to provide evidence of property insurance to the company?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
operation, use or occupancy of the Business and the Retail Location. The COMPANY shall be named as an additional insured in all such policies and there shall be no subrogation of any person to any claims against the COMPANY. Such policy or policies shall be written by a responsible insurance company or companies and shall be in such form and contain such limits of liability as shall be satisfactory to the COMPANY. Such policy or policies shall conform with the requirements set forth in the Manual or otherwise in writing from the COMPANY. The insurance afforded by the aforementioned public liability policies shall not be limited in any way by reason of any insurance which may be maintained by the COMPANY.
- 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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are required to provide evidence of property insurance to the company. Specifically, franchisees must insure their retail location and related assets under standard fire and extended coverage policies. Upon request from Gold Star, the franchisee must exhibit evidence of this insurance coverage.
Furthermore, before construction begins and before the retail location opens, franchisees must furnish certificates of insurance to Gold Star, demonstrating compliance with the insurance requirements. These certificates must state that the insurance policies cannot be canceled or altered without at least thirty days' prior written notice to Gold Star.
If a franchisee fails to maintain the required insurance, Gold Star has the option, but not the obligation, to procure the insurance themselves. In such cases, the franchisee is required to reimburse Gold Star for the costs and premiums, along with interest, from the date the costs were incurred.