What is the minimum comprehensive general liability insurance amount required per occurrence 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
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 required amount 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 dictated by the lease agreement or state laws, potentially exceeding the stated minimum.
Kidokinetics franchisees must also secure additional insurance coverage, including umbrella excess liability coverage of $1,000,000, automobile insurance with a combined single limit of $100,000 (or more, if required by state law), and statutory worker's compensation insurance if they have employees. Furthermore, franchisees need to obtain hired/non-owned automobile insurance, crime insurance for employee dishonesty at $5,000, sexual abuse and molestation coverage, an accident policy, and workers' compensation with $1,000,000 limits or as required by state law.
Kidokinetics retains the right to increase the minimum insurance requirements or add new types of insurance coverage as deemed necessary. Franchisees are obligated to provide proof of coverage to Kidokinetics within 30 days of any such changes. Franchisees must provide certificates of insurance to Kidokinetics at least 30 days before opening their business and upon policy renewal. These certificates serve as evidence of continued coverage and compliance with the required limits. Failing to maintain the required insurance allows Kidokinetics to procure insurance on the franchisee's behalf and charge the franchisee the cost plus a 20% administrative fee.