What is the minimum aggregate comprehensive general liability insurance amount required for a Kidokinetics franchise?
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 or such additional limits as required by state law.
- 14.2. Certificates. 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must maintain comprehensive general liability insurance. The minimum requirement is $1,000,000 per occurrence and $2,000,000 in the aggregate. However, if a franchisee leases commercial office or storage space, the required amount may be higher, depending on the lease terms or state laws.
In addition to comprehensive general liability insurance, Kidokinetics franchisees are required to procure and maintain other types of insurance, including umbrella excess liability coverage of $1,000,000, automobile insurance with a combined single limit of $100,000 (or greater if required by state law), statutory worker's compensation insurance, hired/non-owned automobile insurance, crime insurance for employee dishonesty ($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 also reserves the right to increase the minimum insurance requirements or add additional types of insurance coverage as deemed necessary. Franchisees must provide certificates of insurance to Kidokinetics at least 30 days before opening their business and upon policy renewal. Failure to maintain the required insurance coverage allows Kidokinetics to procure insurance on the franchisee's behalf and charge the franchisee for the cost, plus an additional 20% administrative fee.