What insurance documentation must a Golden Krust Caribbean Restaurant franchisee provide to the franchisor?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
- (12) types, amounts, terms and conditions of insurance coverage required to be carried for the Restaurant and standards for underwriters of policies providing required insurance coverage; our protection and rights under such policies as an additional named insured; required or impermissible insurance contract provisions; assignment of policy rights to us; periodic verification of insurance coverage that must be furnished to us; our right to obtain insurance coverage for the Restaurant at your expense if you fail to obtain required coverage; our right to defend claims; and similar matters relating to insured and uninsured claims;
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, franchisees are required to periodically verify their insurance coverage by furnishing documentation to Golden Krust Franchising, Inc. The specific types, amounts, terms, and conditions of insurance coverage are mandated by Golden Krust for the restaurant.
This includes standards for the underwriters of the insurance policies, ensuring that Golden Krust Franchising, Inc. is protected as an additional named insured under such policies. The franchise agreement also stipulates required or impermissible insurance contract provisions and the assignment of policy rights to Golden Krust.
Furthermore, Golden Krust Franchising, Inc. retains the right to obtain insurance coverage for the restaurant at the franchisee's expense if the franchisee fails to secure the required coverage. They also have the right to defend claims related to insured and uninsured losses. These stipulations are part of the broader system standards that Golden Krust may modify periodically, and which are considered integral to the franchise agreement.