Must the insurance company be authorized to do business in the state where the Kidokinetics Business is located?
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 Kidokinetics business must be authorized to operate in the state where the franchise is located. Additionally, Kidokinetics must approve the insurance company. The insurance provider must have a rating of "A" or better from A.M. Best & Company, Inc.
Kidokinetics also retains the right to increase the required coverage amounts or mandate different or additional insurance coverage at any point. All insurance policies must list Kidokinetics and any designated affiliates as additional named insured parties.
Furthermore, the insurance policy must stipulate that the insurer will provide Kidokinetics with at least 30 days' prior written notice before canceling or materially altering the policy. This ensures Kidokinetics is informed of any changes that could affect the franchisee's coverage and compliance with the franchise agreement.