For Ledgers franchises, who is responsible for the expense of obtaining and maintaining the required insurance coverage?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
eparers must obtain a paid preparer tax identification number ("PTIN") from the IRS.
Insurance**.** You must obtain and maintain, at your own expense, such insurance coverage as required by your state laws. Moreover, you must obtain and maintain insurance coverage as we require, which may exceed insurance coverage required by your state laws. All insurance policies must name us as an "additional insured" party.
Our current insurance specifications are as follows:
- i "all risk" property insurance coverage for assets of the Franchised Business;
- ii workers' compensation insurance and employer liability coverage with a minimum limit of $100,000 or higher if your state law requires;
- iii comprehensive general liability insurance which includes contractual indemnity with a minimum liability coverage of $1,000,000 per occurrence, or higher if your state law requires;
- iv business interruption insurance;
- v commercial automobile liability insurance of at least $1,000,000 or higher if your state law requires;
- vi
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of obtaining and maintaining the required insurance coverage. This includes coverage required by state laws as well as additional coverage Ledgers may require, which could exceed state law requirements.
The insurance policies must name Ledgers as an "additional insured" party. The FDD specifies several types of insurance coverage Ledgers franchisees must maintain. These include "all risk" property insurance for the franchise's assets, workers' compensation and employer liability coverage with a minimum limit of $100,000 (or higher if required by state law), comprehensive general liability insurance with a minimum liability coverage of $1,000,000 per occurrence (or higher if required by state law), business interruption insurance, commercial automobile liability insurance of at least $1,000,000 (or higher if required by state law), and professional liability insurance for errors and omissions in the amount of $1,000,000.
This requirement means that prospective Ledgers franchisees need to factor in potentially significant insurance costs when evaluating the financial feasibility of the franchise. The specific costs will vary depending on the state, the value of the franchise's assets, and other factors influencing insurance premiums. It is common practice in franchising for franchisees to bear the cost of insurance, as it protects both the franchisee's business and the franchisor's brand from potential liabilities.
Prospective franchisees should obtain quotes for all required insurance coverage to get an accurate estimate of these expenses. They should also clarify with Ledgers any specific insurance providers or policy terms that are preferred or required to ensure compliance with the franchise agreement.