When must a Kidokinetics franchisee deliver Certificates of Insurance to the Franchisor?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee must provide Certificates of Insurance to Kidokinetics in two instances. First, the franchisee must deliver the certificates at least 30 days before the Kidokinetics business opens. Second, the franchisee must provide the certificates at least 30 days before the insurance policy renewal date. These certificates serve as proof that the franchisee has the required insurance coverage with the necessary limits.

Kidokinetics also retains the right to increase the minimum insurance requirements or add new types of insurance coverage. If such changes occur, the franchisee must submit proof of coverage meeting the new requirements to Kidokinetics within 30 days of notification. Furthermore, all insurance policies must name Kidokinetics, its officers, directors, partners, agents, and employees as additional insured parties, except for workers' compensation insurance.

The franchisee is also obligated to provide Kidokinetics with copies of any insurance claims or cancellations within 24 hours. This quick notification allows the franchisee a 24-hour window to address any lapses in insurance coverage. Should the franchisee fail to maintain the required insurance, Kidokinetics has the right, but not the obligation, to procure the insurance and charge the franchisee for the cost, plus an additional 20% of the premium to cover administrative costs.