What is the maximum deductible allowed for any of the insurance policies held by a Hyper Kidz franchisee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ost income for up to twelve (12) months;
- (h) money and securities insurance of not less than Ten Thousand Dollars ($10,000) per occurrence inside and One Thousand Dollars ($1,000) per occurrence outside;
- (i) workers compensation and employer liability insurance in the amounts required by the state in which the Hyper Kidz Business is located; and
- (j) any insurance required by the terms of your lease or that we may require in the future.
- 11.8.2 None of your insurance policies shall have a deductible of greater than One Thousand Dollars ($1,000). You shall also maintain such additio
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are required to maintain various insurance policies during the term of the agreement. These policies must be issued by licensed insurers approved by Hyper Kidz and meet specific coverage amounts detailed in the agreement and the Operations Manual.
Hyper Kidz mandates that none of the franchisee's insurance policies can have a deductible greater than $1,000. Franchisees must also maintain any additional insurance necessary to comply with all legal requirements. Hyper Kidz retains the right to periodically increase the required coverage amounts and may also require different or additional kinds of insurance to reflect changes in circumstances such as inflation or new risks.
It is the franchisee's responsibility to ensure sufficient insurance coverage is maintained. Failure to maintain the required insurance coverage or provide satisfactory evidence of coverage and premium payments can result in Hyper Kidz obtaining the insurance on the franchisee's behalf, with the franchisee responsible for all costs and a 10% administrative fee. Continued failure to comply with insurance requirements can lead to termination of the franchise agreement.