Who is responsible for the cost of insurance coverage for a Golden Krust Caribbean Restaurant franchise?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
estrictions described in this item.
Insurance Specifications
In addition to the purchases or leases described above, you are obligated to obtain and maintain, at your own expense, such insurance coverage that we require from time to time and meets the insurance related obligations in the Franchise Agreement. You currently are required to maintain comprehensive liability insurance coverage ($1,000,000 per occurrence, $2,000,000 aggregate) for property damage, bodily injury and death, and blanket contents (approximately $500,000), business interruption (approximately $500,000), theft (approximately $30,000), employee benefit liability (approximately $1,000,000), automobile liability (owned and non-owned) (approximately $1,000,000) coverage. The cost of this coverage will vary depending on the insurance carrier's charges, terms of payment and your history. A
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, franchisees are responsible for obtaining and maintaining the required insurance coverage at their own expense. This includes comprehensive liability insurance coverage ($1,000,000 per occurrence, $2,000,000 aggregate) for property damage, bodily injury and death, blanket contents (approximately $500,000), business interruption (approximately $500,000), theft (approximately $30,000), employee benefit liability (approximately $1,000,000), and automobile liability (owned and non-owned) (approximately $1,000,000) coverage.
The cost of this insurance coverage will vary based on the insurance carrier's charges, terms of payment, and the franchisee's history. It is common practice in franchising for franchisees to bear the cost of their own insurance, as it protects both the franchisee's business and the franchisor's brand from potential liabilities.
Golden Krust Caribbean Restaurant also requires that all insurance policies name them as an additional insured party. This is a standard requirement in franchise agreements, ensuring that the franchisor is also protected under the franchisee's insurance policies. Prospective franchisees should factor in these insurance costs when evaluating the overall investment required to start and operate a Golden Krust Caribbean Restaurant franchise.