What is the minimum amount of public/general liability insurance, including child molestation coverage, required per occurrence for a Hyper Kidz franchise?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees must maintain public/general liability insurance, including child molestation coverage, of at least $1,000,000 per occurrence. Additionally, the franchisee must carry $2,000,000 in aggregate coverage and $250,000 for damage to rented premises per occurrence.

These insurance requirements are designed to protect both the franchisee and Hyper Kidz from potential liabilities arising from the operation of the business. The specific inclusion of child molestation coverage highlights the importance of safety and security in a children's entertainment franchise like Hyper Kidz. Franchisees should carefully review their insurance policies to ensure they meet these minimum requirements and understand the scope of their coverage.

Hyper Kidz also retains the right to modify these insurance requirements, so franchisees must stay informed of any changes. Furthermore, all insurance policies must be written by licensed insurers approved by Hyper Kidz, with a rating of at least "A" with A.M. Best, and licensed to do business in the state where the Hyper Kidz Business is located. Franchisees must also ensure that their insurance policies do not have a deductible greater than $1,000.

Meeting these insurance requirements is a condition for opening the Hyper Kidz Business. Franchisees must provide Hyper Kidz with copies of all insurance policies or other evidence of coverage and premium payments before opening. Failure to maintain the required insurance or provide satisfactory evidence may result in Hyper Kidz obtaining 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.