Does a Kidokinetics franchisee have to provide Certificates of Insurance to Kidokinetics?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
At least 30 days prior to the opening of the Kidokinetics Business and policy renewal date, Franchisee shall deliver to Franchisor Certificates of Insurance evidencing the existence and continuation of proper coverage with limits not less than those required hereunder.
In addition, if requested by Franchisor, Franchisee shall deliver to Franchisor a copy of the insurance policy or policies required in Article 14.
All policies of insurance required to be maintained by Franchisee will be renewed (and policies or certificates together with evidence of payment of premiums delivered to Franchisor) at least 30 days prior to the respective expiration dates of existing policies of insurance.
All such policies shall contain endorsements requiring the insurer to give Franchisor at least 10 days written notice before terminating, canceling or making any changes in any such policy.
Franchisor's acceptance of an insurance carrier does not constitute Franchisor's representation or guarantee that the insurance carrier will be capable of meeting claims during the term of the insurance policy.
- 14.3. Failure to Procure.
If, for any reason, Franchisee should fail to procure or maintain the insurance required by this Agreement as revised from time to time for all franchisees by the Franchise Operations Manual or otherwise in writing, Franchisor will have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge Franchisee for the cost of the insurance plus twenty percent (20%) of the premium for an administrative cost of obtaining the insurance.
Franchisee shall pay Franchisor immediately upon notice by Franchisor to Franchisee that Franchisor has undertaken such action and the cost.
- 14.4.
Indemnification.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee is required to provide Certificates of Insurance to Kidokinetics. Specifically, at least 30 days before opening their Kidokinetics business and on each policy renewal date, the franchisee must provide these certificates. These certificates serve as proof that the franchisee has and maintains the required insurance coverage with the necessary limits.
Kidokinetics also has the right to increase the minimum insurance requirements or add new types of insurance coverage as deemed necessary. If such changes occur, the franchisee must provide proof of coverage meeting the new requirements within 30 days. Furthermore, all insurance policies must name Kidokinetics, including its officers, directors, partners, agents, and employees, as additional insured parties, except for workers' compensation insurance.
In addition to providing certificates, franchisees must also supply Kidokinetics with copies of any insurance claims or cancellations within 24 hours. Failure to maintain the required insurance allows Kidokinetics to procure insurance on behalf of the franchisee and charge the franchisee for the cost, plus an additional 20% of the premium to cover administrative costs. This ensures that Kidokinetics is protected and that franchisees maintain adequate coverage, with Kidokinetics having the authority to enforce these requirements.
Overall, these requirements ensure that Kidokinetics franchisees maintain adequate insurance coverage to protect both their business and the Kidokinetics brand. Franchisees should carefully review the insurance requirements outlined in the Franchise Operations Manual and maintain open communication with Kidokinetics regarding any changes or updates to these requirements.