Are Kidokinetics franchisees required to maintain hired/non-owned automobile insurance?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
nchise Operations Manual or otherwise in writing):
- 14.1.1. Liability. Franchise will be required to procure and maintain insurance in the amounts Franchisor prescribes. Presently, Franchisor's insurance requirements are as follows: (i) comprehensive general liability insurance in the amount of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, or in the event you lease commercial office space or storage space, such amount as required by your lease or state laws; (ii) umbrella excess liability coverage
in an amount equal to $1,000,000 combined single limit coverage; (iii) automobile insurance in the amount of at least a combined single limit for bodily and property damage of $100,000, or greater if required by state law; and, if you have employees, statutory worker's compensation insurance in the limits required by state law; (iv) hired-non owned automobile insurance; (v) crime insurance for employee dishonesty in the amount of $5,000 combined single limit; (vi) sexual abuse and molestation coverage; (vii) an accident policy; and (viii) workers compensation with $1,000,000 limits
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to procure and maintain hired/non-owned automobile insurance. This insurance is one of several policies Kidokinetics requires franchisees to maintain during the term of the Franchise Agreement.
In addition to hired/non-owned automobile insurance, Kidokinetics franchisees must also maintain: comprehensive general liability insurance of at least $1,000,000 per occurrence and $2,000,000 in the aggregate (or as required by lease or state laws if leasing commercial space); umbrella excess liability coverage of $1,000,000 combined single limit; automobile insurance of at least $100,000 combined single limit (or more, if required by state law); statutory worker's compensation insurance (if they have employees); crime insurance for employee dishonesty in the amount of $5,000 combined single limit; sexual abuse and molestation coverage; an accident policy; and workers compensation with $1,000,000 limits or such additional limits as required by state law.
Kidokinetics franchisees must provide certificates of insurance to Kidokinetics at least 30 days prior to the opening of the Kidokinetics Business and on each policy renewal date. The insurance policies must be rated A or better with A.M. Best Company and name Kidokinetics, its officers, directors, partners, owners, employees, and affiliates as additional insureds. Kidokinetics retains the right to increase the required minimum coverage or add additional types of insurance as deemed reasonably prudent. Failure to maintain the required insurance allows Kidokinetics to procure insurance on behalf of the franchisee and charge the franchisee for the cost plus 20% for administrative costs.