What rating must the insurance company have to 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 meet specific criteria. The insurance company must be authorized to conduct business in the state where the Kidokinetics business is located, and it must be approved by Kidokinetics. Furthermore, the insurance company must have a rating of "A" or better from A.M. Best & Company, Inc. This requirement ensures that the insurance provider is financially stable and capable of meeting potential claims.
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 name Kidokinetics and any designated affiliates as additional named insured parties. This protects Kidokinetics from potential liabilities arising from the franchisee's operations.
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 advance notice allows Kidokinetics to ensure continuous coverage and protect its interests. These stipulations are typical in franchise agreements to protect the franchisor from liability related to the franchisee's business.