Can Itan specify additional insurance requirements for franchisees in the Manual from time to time?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
These policies reflect our minimum requirements and may not be adequate to protect you. You may wish to procure additional coverage. You must provide us with proof of coverage: (a) prior to opening; (b) within 10 days after a policy renewal; and (c) any other time on demand. You must obtain these policies from licensed insurance carriers rated A or better by AM Best. Each policy must satisfy all requirements in the Manual and be endorsed to: (a) name us and our owners, officers and directors as additional insureds; (b) waive all subrogation rights against us; and (c) provide us with at least 30 days' prior written notice of the termination, expiration, cancellation or modification of the policy. We may disapprove any policy that fails to meet these criteria, and you must immediately secure a new policy meeting our criteria. Upon 10 days' notice, we may increase the minimum liability coverage amount of any policy and/or require different or additional types of insurance, including excess liability (umbrella) insurance, due to inflation, special risks, changes in Law or standards of liability, higher damage awards or other relevant changes in circumstances. If you fail to maintain a required policy we may, at our option, obtain the policy on your behalf. If we do so, you must promptly sign any application or other form required to obtain the policy and reimburse all premiums and other costs we incur.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan can modify the insurance requirements for franchisees. Itan's minimum insurance requirements may not be adequate to protect the franchisee, and the franchisee may procure additional coverage.
Itan requires franchisees to provide proof of coverage before opening, within 10 days after a policy renewal, and at any other time upon demand. The insurance policies must be obtained from licensed insurance carriers rated A or better by AM Best. Each policy must meet all requirements in the Manual and be endorsed to name Itan and its owners, officers, and directors as additional insureds, waive all subrogation rights against Itan, and provide Itan with at least 30 days' prior written notice of any termination, expiration, cancellation, or modification of the policy. Itan may disapprove any policy that fails to meet these criteria, and the franchisee must immediately secure a new policy meeting Itan's criteria.
Itan can increase the minimum liability coverage amount of any policy and/or require different or additional types of insurance, including excess liability (umbrella) insurance. This can occur due to inflation, special risks, changes in Law or standards of liability, higher damage awards, or other relevant changes in circumstances. If a franchisee fails to maintain a required policy, Itan may, at its option, obtain the policy on the franchisee's behalf, and the franchisee must promptly sign any application or other form required to obtain the policy and reimburse all premiums and other costs Itan incurs.