What minimum A.M. Best rating must the insurance carriers used by a Hyper Kidz franchisee have?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees must secure insurance policies from licensed insurers that Hyper Kidz approves. These insurers must have a minimum A.M. Best rating of "A" and be licensed to operate in the state where the Hyper Kidz Business is located.

Hyper Kidz requires franchisees to maintain specific insurance coverage throughout the term of the agreement. These requirements include public/general liability insurance, umbrella liability insurance, personal and advertising injury coverage, products/completed operations coverage, property damage insurance, automobile insurance, business interruption insurance, and money and securities insurance. The specific amounts of coverage required for each type of insurance are detailed in the FDD, such as $1,000,000 per occurrence and $2,000,000 aggregate for public/general liability insurance.

Hyper Kidz retains the right to modify its insurance requirements, and franchisees are obligated to comply with any such changes. This ensures that the insurance coverage remains adequate and up-to-date. Franchisees must provide Hyper Kidz with copies of all insurance policies or other evidence of coverage and premium payments before opening their Hyper Kidz Business. Failure to maintain the required insurance or to reimburse Hyper Kidz for insurance purchased on the franchisee's behalf can result in a default under the Franchise Agreement.