What information must be included on the certificates of insurance provided by a Gold Star franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, before construction commences and before the Retail Location opens for business, a franchisee must furnish the company with appropriate certificates of insurance. These certificates must demonstrate compliance with the insurance requirements outlined in Section 18 of the franchise agreement.
Specifically, the certificates must state that the insurance policy or policies will not be canceled or altered without providing Gold Star at least thirty (30) days prior written notice. This advance notice allows Gold Star to ensure continuous coverage and protect its interests.
The FDD emphasizes that maintaining the required insurance and fulfilling all obligations under Section 18 does not relieve the franchisee of any liabilities or limit their responsibilities as defined in the indemnity provisions of the Franchise Agreement. This underscores the importance of franchisees understanding their potential liabilities and ensuring adequate insurance coverage to mitigate risks associated with operating a Gold Star franchise.