Must the insurance company be approved by Kidokinetics?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The insurance company must be authorized to do business in the state where your Kidokinetics Business is located and must be approved by us. It must also be rated "A" or better by A.M. Best & Company, Inc. We may periodically increase the amount of coverage required under these insurance policies and/or require different or additional insurance coverage at any time. All insurance policies must name us and any affiliates we designate as additional named insured parties. Your policy must provide that the insurer will not cancel or materially alter the policies without giving us at least 30 days' prior written notice.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the insurance company providing coverage for a franchisee's Kidokinetics business must be authorized to operate in the state where the business is located and must receive approval from Kidokinetics. Additionally, the insurance company must have a rating of "A" or better from A.M. Best & Company, Inc.
Kidokinetics retains the right to periodically increase the required coverage amounts or mandate different or additional insurance coverage at any time. All insurance policies must list Kidokinetics and any designated affiliates as additional named insured parties.
The insurance policy must also stipulate that the insurer will provide Kidokinetics with at least 30 days' prior written notice before canceling or materially altering the policy. This requirement ensures that Kidokinetics is informed of any changes to the franchisee's insurance coverage, allowing them to take necessary actions to protect their interests and maintain compliance with the franchise agreement.