What is the minimum crime insurance coverage amount for employee dishonesty 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
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must maintain crime insurance for employee dishonesty with a minimum coverage of $5,000 combined single limit. This insurance is intended to protect the Kidokinetics business from financial losses resulting from dishonest acts committed by employees.
In addition to the employee dishonesty coverage, Kidokinetics requires franchisees to procure and maintain several other insurance policies, including comprehensive general liability insurance, umbrella excess liability coverage, automobile insurance, and workers' compensation insurance. The specific amounts and terms of these policies are detailed in the FDD, and Kidokinetics retains the right to increase the minimum coverage requirements or add additional types of insurance as deemed necessary.
It is important for prospective Kidokinetics franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their overall business plan. Failure to procure or maintain the required insurance can result in Kidokinetics obtaining the insurance on the franchisee's behalf and charging the franchisee for the cost, plus an additional 20% administrative fee.