What is the maximum deductible allowed for any of the insurance policies maintained 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 additional insurance as i
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are not permitted to have a deductible greater than $1,000 for any of their insurance policies. Hyper Kidz mandates that franchisees maintain various insurance policies, and the franchisor retains the right to modify the required coverage amounts and types of insurance.
This deductible limit has significant implications for franchisees. A lower deductible typically translates to higher premium costs, but it also means lower out-of-pocket expenses in the event of a claim. Franchisees need to factor in these potentially higher insurance costs when assessing the overall financial viability of the franchise.
Hyper Kidz also has the authority to request claims reports and reserve details from the franchisee's insurance company. This enables Hyper Kidz to monitor the risk profile of each franchise location and ensure compliance with the insurance requirements. Franchisees must comply with all insurance-related requests from Hyper Kidz and maintain adequate coverage throughout the term of the franchise agreement.